Chinese state group BBCA is expected to invest US$320 million in building a factory to process maize in Maracaju, in the Brazilian state of Mato Grosso do Sul, under the terms of a document signed Tuesday in Beijing.
Governor André Puccinelli, who signed the deal, said that this was the biggest project carried out by a Chinese company in Mato Grosso do Sul, which was achieved following three years of negotiation “mainly on a legal level.”
The agreement includes a partnership between the company, the State’s government and the municipal area.
Construction of the factory is due to begin this year, and it is expected to start operating in 2015.
The governor of Mato Grosso do Sul, said that the BBCA Group, which is specialised in biochemical production, had committed to process around 600,000 tons of maize, 60 percent of which would be sent to the Chinese market and 40 percent would be for the Brazilian market.
“This agreement is of benefit to both sides,” said Puccinelli, who noted that Mato Grosso do Sul had the raw materials but lacked the facilities to make use of them.
The BBCA group, which was founded in 1958, currently has 8,700 workers and 8 subsidiaries – BBCA Pharmaceutical, Taifu Industry, BBCA Biochemical, Tiger-Biology, BBCA Gelatin, BBCA Food, BBCA Pharmaceutical Technology Co. and BBCA Chemical Equipment. (macauhub)