Bunge Ltd. has announced plans to construct a sunseed crushing and refining plant in Voronezh, Russia, for approximately US$70 million. It will be Bunge's first plant in the country.



When completed in spring 2006, the facility will supply Bunge's consumer bottled oil business in Russia, which is primarily supplied by its facility in Ukraine. Bunge markets two bottled oil brands in Russia: Ideal(TM), a premium brand acquired in 2004, and Oleina(TM), an established and popular brand. With these two brands and its new facility, Bunge believes it is well positioned to increase its bottled oil sales to this important, yet regional and still fragmented, market.



The plant will be located approximately 375 miles south of Moscow. It will have efficient access to growing Russian sunseed production and to the large markets of Moscow, St. Petersburg and central Russia. The large-scale facility will use world-class technology, and have an annual crushing capacity of approximately 500,000 metric tons and an oil refining and bottling capacity of approximately 200,000 metric tons.



In addition to Voronezh, Bunge is also constructing a multi-seed crushing plant in Iliychevsk, Ukraine through a joint venture. The company currently operates inland elevators in Romania and Ukraine, and grain terminals at ports on the Baltic and Black Seas, and in Turkey.



Source: Company Release