Louis Dreyfus Co, through its LDC (China) Trading Co subsidiary, has acquired Chinese Sinarmas Natural Resources Foodstuff Technology (Tianjin) and its soyabean crush and refining facilities.

Located in the Lingang Economic Area in the Binghai New Area district of Tianjin City, the facility had a soyabean crush capacity of 3,600 tonnes/day, producing soyabean meal and crude soyabean oil, and a refining capacity of roughly 1,000 tonnes/day of refined vegetable oil, said LDC in a 3 April statement.

The facility also included bottling, filling and packaging lines alongside storage facilities.

LDC said the acquisition, agreed on in November 2017, reflected the firm’s confidence in China’s “dynamic agricultural processing sector”.

“China is a vital market for global agricultural trade and integral to LDC’s long-term growth ambitions,” said LDC CEO Gonzalo Ramírez Martiarena.

“This latest acquisition is a positive response to the Chinese government’s encouragement for more foreign direct investment in the agricultural processing sector,” he added.

LDC is a major supplier of soyabeans to China’s domestic crushing industry and it operates three soyabean crush facilities in the provinces of Guangdong, Hebei and Jiangsu.

“With our expanded oilseeds portfolio in China, we are committed to providing the domestic market with high quality products that will help to meet growing consumption, especially the demand for protein and refined oil,” LDC head of North Asia region James Zhou said.

LDC did not disclose the value of the acquisition.