Viterra Inc.
TSX : VT
ASX : VTA

Viterra Inc.

April 20, 2010 09:29 ET

Viterra Enters Joint Venture to Construct a New Canola Plant in China

CALGARY, ALBERTA--(Marketwire - April 20, 2010) - Viterra Inc. (TSX:VT) (ASX:VTA) is pleased to confirm that it has entered into a joint venture with Guangxi Beibu Gulf International Port Group Co. Ltd. to build a canola crushing facility in the province of Guangxi, South China at the port of Fangchenggang. The plant is expected to crush 2,000 metric tonnes of canola per day, or approximately 680,000 tonnes annually. Viterra's investment is estimated to be approximately US $20-25 million.

Viterra will hold a 49 per cent interest in the enterprise, the maximum allowable investment in the market, while its partner Guangxi Beibu Gulf International Port Group will have a 51 per cent share. The joint venture will be known as Fangchenggang Maple Grain & Oil Industrial Co. Ltd. Construction will begin in May and is expected to be complete in approximately 18 months.

"We are very pleased to enter this joint venture with Guangxi Beibu Gulf International Port Group. Their significant relationships and experience in the region are highly valued, and we look forward to a prosperous future with them. Our joint venture fits well with our overall strategy to expand our processing value chain into key end-use markets such as China, where, over the course of several decades, we have established long-lasting sales and marketing relationships and where the future demand for quality food ingredients is forecast to rise substantially," said Mayo Schmidt, President and CEO of Viterra Inc.

With an integrated value chain that includes the research and development of canola seed technologies, origination networks in Canada and Australia, and production processing, Viterra's new joint venture in China further extends and diversifies the Company's capabilities in processing in a region that is experiencing significant demand for canola oil and canola meal-based proteins.

Mr. Schmidt added, "I would also like to acknowledge the considerable effort that Canada's federal government has made in maintaining and enhancing relationships in the regions to support continued demand for Canadian grains and oilseeds. I am confident that the work currently underway between our respective governments and the industry will help ensure Canadian canola seed exports remain strong into China into the future."

About Guangxi Beibu Gulf International Port Group Co. Ltd.

Guangxi Beibu Gulf International Port Group Co. Ltd. is a state owned company of the Guangxi Zhuang Autonomous Region Government responsible for the operation of the three coastal ports that comprise the Ports of Guangxi. Handling over USD $5.5 billion of trade annually, the Ports' modern infrastructure is currently comprised of more than 50 production berths with the ability to handle approximately 100 million tonnes of cargo. Strategically located in Fangcheng, Qinzhou, and Beihai, the Ports are undergoing a rapid expansion plan that will see an additional 200 million tonnes of capacity by 2015.

About Viterra

Viterra Inc. provides premium quality ingredients to leading global food manufacturers. Headquartered in Canada, the global agribusiness has extensive operations across Western Canada, Australia, and New Zealand, with Adelaide, Australia as the base for Viterra's Southeast Asian operations. Our growing international presence also extends to operations in the United States, offices in Japan, Singapore, China and Switzerland. Driven by an entrepreneurial spirit, we operate in three distinct businesses: grain handling and marketing, agri-products, and value-added processing. Our expertise, close relationships with producers, and superior logistical assets allow the company to consistently meet the needs of the most discerning end-use customers, helping to fulfill the nutritional needs of people around the world.

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