World Grain - April 2014 - 16

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Sumitomo to build flour mill in Vietnam
HO CHI MINH CITY, VIETNAM - Emerald Grain's parent company Sumitomo Corp. announced on March 24 plans to build a new
wheat flour mill outside Ho Chi Minh City, Vietnam.
The new plant, named CJ-SC Global Milling, will commence operations by May 2015. The mill will manufacture 150,000 tonnes of
wheat flour per year for Vietnam and Cambodia, mainly for premium
bread and banh-mi bread rolls. Sumitomo has a 49% share in the
facility, alongside South Korea's CJ CheilJedang.
Sumitomo Food, Materials and Real Estate Business Unit Head
Asia & Oceania Hideki Hijiya said the new mill means new opportunities for Australian wheat growers. "This mill is part of Sumitomo

Corporation's plan to build integrated supply chains across Asia and
provide new pathways for Australian grain into the market," Hijiya
said. "Australia also has a freight advantage into Vietnam compared
with some other high-quality grain exporting countries."
Hijiya said Sumitomo's long-term strategic plan involves more investment in international food and agriculture businesses. "The growing Asian middle class combined with world population growth means
there is a lot of opportunity in agribusiness, food processing and food
manufacturing," he said. "Sumitomo's recent 100% acquisition of Emerald Grain is part of our strategy to be a large player in the food supply
chain throughout Asia."

Group to develop grain facility at Port Kembla
NEW SOUTH WALES, AUSTRALIA - Emerald Grain said on
March 27 that it has entered into an agreement to acquire a share in a
consortium with listed logistics business Qube and grain businesses
Noble Resources and Cargill to develop a new grain handling facility
at Port Kembla in New South Wales, Australia.
The new facility will have the capacity to handle more than 1.3
million tonnes of grain per year.
Emerald Grain Managing Director John Murray said Emerald
Grain's storage and receival sites at Ardlethan, Coolamon and Goolgowi will feed grain through to the terminal via road and rail.

"And we are looking to bring even more storage sites into the network to provide New South Wales grain growers with an efficient,
alternative pathway to international markets," Murray said.
In New South Wales, Sumitomo-owned Emerald accumulates
grain through Southern Ag Grain, a joint-venture partnership with
grower-owned Southern Agventure.
Murray said the proposed grain terminal would be completed by
late 2015, and it would be operated on an open-access regime for all
grain marketers. "Sumitomo has provided Emerald Grain the balance
sheet to make further investment in ports and storages."

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April 2014 / World Grain / www.World-Grain.com

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World Grain - April 2014

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