China’s Hunan Dakang International Food & Agriculture Co Ltd announced on Wednesday in São Paulo that it intends to raise US$300 million to expand its agricultural and livestock activity in Brazil, according to Globo Rural magazine.
The group bought a 57% stake in the Fiagril trading company in 2016 and this year it acquired a stake of 53.99% in the share capital of Belagrícola, a company specialising in the sale of equipment for the agricultural sector.
The two companies jointly trade around six million tonnes of grain per year, most of which is exported, and the group intends to use the resulting turnover as a guarantee to secure credit from the Brazilian banking sector.
“The group intends to expand locally but, at the moment, the focus is on the profitability of existing businesses,” said Fábio Jacob, Dakang’s financial director in Brazil.
During the session to present the group’s plans to representatives of Brazilian banks, the group’s president, Ge Jungie, recalled that the economies of Brazil and China are complementary, which brings “great opportunities” for business in the country. (macauhub)