Viterra in China venture
Will invest up to $25M
Shares in Regina-based Viterra Inc. rose Tuesday after the company announced it is investing in a joint venture to build a canola crushing facility in China.
Viterra, one of Canada's largest grain handlers, said it will invest up to $25 million US in the deal with Guangxi Beibu Gulf International Port Group Co. Ltd. Under the deal, Viterra will have a 49 per cent stake in the plant.
Viterra shares closed up 25 cents to $8.97 on the Toronto Stock Exchange.
The plant would be built at the port of Guangxi, in southern China. Construction is due to start next month and take about 18 months.
Canola seeds are used to produce an edible oil that is commonly used in food and cooking.
"Our joint venture fits well with our overall strategy to expand our processing value chain into key end-use markets such as China," CEO Mayo Schmidt said in a release.
He said Viterra has long-term sales and marketing agreements in the region, where demand is forecast to rise "substantially."
With files from The Canadian Press