Molinos Rio de la Plata – one of Argentina’s largest branded food products companies – will be investing US$70M to expand its soyabean operations in San Lorenzo, Santa Fe, Argentina’s cabinet chief Marcos Peña announced at a press conference on 29 April.

The investment would expand storage for soyabeans and meal, enhance cereals operation and increase annual processing to 6M tonnes of oilseeds and 2M tonnes of exports, said.

The company was also investing an additional 50M pesos (US$3.5M) in working capital to improve logistics and add space for processing and handling grain exports.

Argentinean officials said the investment was the result of new government policies designed to promote economic growth in Argentina, said.

The San Lorenzo plant began operations in 1991 and work on the facility would begin in three months and take around two years to complete.

Molinos Río de la Plata is a large exporter of sunflower oil and one of Argentina's main exporters of bottled oil. It also produces a wide range of packaged foods for domestic consumption, including bottled oil, margarine, pasta, pre-mixes, packaged flours, rice, cold cuts, and frozen foods.

It operates 20 manufacturing plants, 10 distribution centres and owns 75,000ha of prime Pampas land for the production of wheat.

President Mauricio Macri, who took office in December 2015 after running a pro-agriculture campaign, has made a number of reforms to agricultural export policy including the removal of export quotas; the scrapping of export taxes on wheat, corn, soya meal and soya oil exports; a cut in soyabean export taxes; and the floating and subsequent devaluation of the peso.