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Agreement Signed on Grain Storage and Logistics between COFCO and Xinxiang Release Time : 2012-03-20

On June 16, a ceremony was launched for COFCO and Xinxiang Government of Henan Province signing the Project Investment Agreement on grain storage and logistics, which indicates China’s first wheat logistics complex entering into its substantial construction phase. The project is aimed to COFCO playing its leading role in contributing to increase in farmers’ incomes and improvement in relevant industries.

The project is located in Xinxiang, Henan Province, which is China’s premium wheat producing region. It covers 279 Chinese mus with the total storage capacity of 380,000 tons. It will be implemented in two phases. Its completion will see silos, barns, warehouses, R&D centers, bulk loading and unloading facilities for rails, trucks and containers, and seed processing facilities.

The project is initiated in pursuit of source control, efficient transit and value-added trade. It is implemented on a higher level basis and up to stricter standards. It will be focused on transit service and operated on a decentralized basis.

After its completion, the project will generate a yearly transit capacity of 1 million tons of wheat and become China’s first wheat logistics complex integrating storage, transit, blending, seed processing, testing, and R&D.

According to Mr. Li Ming, COFCO’s Assistant President, this project is innovation, challenging and pioneering. The project will serve as COFCO’s important base to develop its grain and oil business on the whole chain basis. The completion of the project will facilitate COFCO in playing its leading role in stable quality wheat supply, helping farmers increase their income and facilitating upgrade of the wheat industry.

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