GrainCorp expands grain origination footprint in Canada
Dec. 14, 2015 - GrainCorp, an Australian-based agri-business, is expanding its grain origination footprint in Canada, through the establishment of a joint venture with Zen-Noh Grain Corporation, a subsidiary of major Japanese agricultural cooperative Zen-Noh (National Federation of Agricultural Cooperative Associations).
GrainCorp will hold a 50 per cent share in the joint venture, which will be based in Calgary, Alta., and plans to operate grain receival sites across Alberta and Saskatchewan. These sites will be part of a fully integrated supply chain for the origination, marketing, storage, handling, distribution and exporting of Canadian grains and oilseeds.
To support the start-up phase, including construction and commissioning of the sites, GrainCorp will contribute CAD$30 million over the next two years, while the joint venture will source additional funding from financial institutions of CAD$60 million.
GrainCorp's contribution will be made from existing cash and debt facilities.
Construction is expected to be staged progressively from the second half of 2016 through to the end of 2018. The construction and other activities of the joint venture are subject to the satisfactory completion of due diligence of the potential sites, as well as obtaining other customary regulatory and planning approvals.GrainCorp Marketing's existing office will support the joint venture to manage the origination process with Canadian grain growers. Discussions have commenced in relation to rail and port access for the joint venture.
December 14, 2015 By Top Crop Manager