Cargill Purchases Properties Of Peking University Green Technology Co. Ltd.
Jun. 28, 2005
Cargill has finalized the purchase of part of Peking University Green Technology Co. Ltd. (PGT)'s properties, which includes all the intellectual properties around the production, sales and marketing of food ingredient systems. The purchase will allow Cargill to leverage PGT's deep customer knowledge and food system expertise to further develop China's food industry and better serve Chinese consumers.
A food ingredient system is a blend of different food ingredients, such as emulsifiers and texturizers that provide critical functions, e.g. texture or taste, for a food or beverage product. The food ingredient systems market is an emerging industry in China. PGT has established itself as a pioneer in this industry through developing strong and in-depth relationships with its key customers.
"This purchase is a win-win not only for Cargill and PGT, but also for Cargill and PGT's customers in China,' said Gerrit Hueting, president, Cargill Starches & Sweeteners business unit in China. "The combined strengths of Cargill and PGT in China is the best possible fit in the industry in terms of product, technology and employee skills."
"We decided to take this option not only because the cultures of two sides are well-matched, but more importantly PGT can gain access to the global market and Cargill's 140-year's management experience," said Chen Wensheng, executive vice president of Peking University. "The talented people whom the university has invested in will have the opportunity to continue to make a substantial and positive impact on the Chinese food industry and deliver high quality and value to Chinese consumers. Successful completion of this transaction will lead to stronger growth of China's food ingredient industry."
"PGT has an excellent team of employees whom we welcome to join Cargill. Our objective is to be the global leader in nourishing people and this purchase would allow us accelerate our journey of nourishing the largest population in the world by working with the Chinese food industry closely and diligently," added Norwell Coquillard, president of Cargill Greater China.
China's food market has experienced explosive growth in the past five years. In 2003, China's GDP grew 9.1% to US$1.4 trillion while the Chinese food industry achieved a 17.6% growth to total US$150 billion. It is expected that the overall food industry in China will likely continue to grow at a pace of more than 10% a year in the next five years.
Source: Company Release
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