Privately owned company Shanghai Peng Xin Co Ltd said it was showing continued interest in investing in Brazil. Ge Junjie, deputy chairman, said during Brazil-China Agri-Food Cooperation Forum held in Shanghai on Tuesday [16 May 2017] that Peng Xin will set up a soybean production factory in Brazil with an annual capacity of 10 million metric tons by the end of this year. With this base, Peng Xin expects to export more Brazilian soybeans to the Chinese market…Full Article: China Daily May 2017

Key Point

  • The soybean processing factory will Shanghai Pengxin’s third major investment in Brazil (Fiagril in April 2016 and Banco Indusval & Partners in June 2016). According to the Deputy Chairman of Shanghai Pengxin, going forward in Brazil, the company will focus on animal protein and vegetable protein products.

ChinaAg Comments

  • In June 2016, Shanghai Pengxin Group was holding talks to acquire Brazil’s Banco Indusval & Partners SA (BI&P), a mid-tier bank. Shanghai Pengxin Group was reportedly interested in purchasing the Brazilian lender as a means to facilitate future agribusiness deals in the country. The Chinese company may invest upwards of US$3 billion in Brazil.
  • In April 2016, Hunan Dakang Pasture Farming (owned by Shanghai Pengxin) purchased a 57% stake in Brazil’s Fiagril (a major trader of soybeans, corn, biodiesel, and glycerin) for US$286 million. During the same month, the Australian government preliminary vetoed the sale of S. Kidman and Co. to Shanghai Pengxin once again. Shortly thereafter Shanghai Pengxin withdrew its bid.
  • In March 2016, Australian Rural Capital has announced it was partnering with Shanghai Pengxin Group to purchase S Kidman & Co Ltd (Kidman).
  • In late 2012, Shanghai Pengxin won a legal battle to purchase 16 North Island dairy (CraFarms) farms. The farms (8,000 ha and 16,000 cows) were purchased by Shanghai Pengxin’s subsidiary Pengxin New Zealand Farm Group.
  • Founded in 1997 and headquartered in Huaihua, Hunan Province, Hunan Dakang Pasture Farming (SHE:002505) is a producer of meat (pork, beef, sheep) and dairy products.
  • Founded in 1988 and headquartered in Shanghai, Shanghai Pengxin owned more than 40 subsidiary companies as of 2015.  The conglomerate has businesses in real estate, mining, agriculture, and private equity.

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