On June 6, 2012, COFCO completed construction of its industrial park in Chengdu, Sichuan Province. The industrial park covers 210 acres with the total investment of RMB 2.2 billion. Its total processing capacity reaches 1.5 million tons, including 600,000 tons of wheat processing, 36,000 tons of fine dried noodles, 180,000 tons of fine small-packaged oil and fat, 100,000 tons of rice, 300,000 tons of feed and 200,000 tons of starch sugar. Its total storage capacity reaches 477,000 million tons. And its trading turnover reaches 1.29 million tons. The industrial park is 23 kilometers from Chengdu urban area and 13 kilometers from Southwestern Airport. The location is the intersection of seven national, provincial and city highways. It is also adjacent to one of the key modern logistics centers, which has the capacity of 20 million tons. In its neighborhood gather a number of downstream food and feed production and processing enterprises, like New Hope Group, Tongwei Group, Sunwind Group and Baixiang Food Group. The output is expected to reach RMB 8 billion, contributing RMB 300 million to taxation. This is another move made by COFCO in its fully integrated business strategy, also instrumental to growth of local relevant industries.
Sichuan Province is one of China’s main grain growing provinces. Its total production in 2010 was 32.23 million tons. The grain growing area and production ranked the 3rd of the country. Chengdu is the core grain and oil production region and the core consumption market. It has natural advantages. Back to February 2010, COFCO signed the strategic cooperation agreement with Chengdu Government for build this project.
COFCO is planning on building 10 to 20 comprehensive industrial parks across the country to strengthen its competitiveness in the market by building synergy and reducing costs and drive growth of local economy and increase local employment.