DOMESTIC agribusiness group New Hope plans to build its first soybean crushing plant in Hebei Province in a joint venture with Cargill, its chairman Liu Yonghao said Saturday.

    New Hope and Hebei’s provincial State-owned firms will own 51 percent of the project, which will have a daily capacity of 50,000 tons, while U.S. commodity merchant Cargill will hold 49 percent, he said.

    The soy crushing industry in China, the world’s top soybean buyer, has expanded rapidly in recent years due to rising demand from breeders of livestock from hogs to poultry, although there is significant overcapacity in the sector.

    Liu has built New Hope from a small chicken farm into the country’s top animal feed producer, with businesses extending to banking and property and annual sales topping 90 billion yuan (US$13.83 billion).

    His plans come as New Hope also aims to expand abroad.

    In about 10 years, international farm products will account for 40 percent of total revenue, up from 10 percent currently. The firm is setting up a European headquarters in the Netherlands and will open a U.S. office, Liu said. The firm already has overseas offices in Australia and Singapore.

    For its global strategy, Liu said New Hope will build factories in under-developed countries while focusing on acquisitions and partnerships in developed countries. (SD-Agencies)