A group of state-owned Chinese firms plan to form a consortium to bid in an auction for the right to build and operate a railway known as Ferrogrão, Brazil’s secretary for the government’s public-private partnerships programme, Adalberto Vasconcelos, said on Friday [27 October 2017]…Full Article: South China Morning Post Oct 2017
- Ferrogrão is a ~1,100 km railway project to link Brazil’s central-western grain producing regions [i.e. Sinop, Mato Grosso] with the internal northern port of Miritituba [i.e. Itaituba, Pará State].
- In May 2017, a joint Brazil-China investment fund was established with USD 20 billion. The fund would be used to finance development projects in Brazil.
- In May 2017, Shanghai Pengxin Group announced it would establish a soybean production factory (~10 million MTs annual capacity) in Brazil by the end of 2017. 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.
- 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.
- Founded in 1989 and headquartered in Mato Grosso State, western Brazil, Fiagril is a major trader of soybeans, corn, biodiesel, and glycerin. Fiagril is also a shareholder of Sierra Bonita Seeds (founded 2013), which is based in Goiás State (central-west Brazil) and is a distributor of genetically modified seed products from Syngenta, Monsanto, and Brasmax Genética.
- 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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