- GrianCorp to contribute C$30 million to 50-50 venture
- JV to run grain receival sites across Alberta, Saskatchewan
GrainCorp Ltd. agreed with Zen-Noh Grain Corp., a subsidiary of Japanese agricultural cooperative Zen-Noh, to establish an equally-owned joint venture in Calgary, Canada.
GrainCorp will contribute C$30 million ($22 million) to the project over the next two years, while the venture will source additional funding of C$60 million from financial institutions, the Australian crop handler said in a statement Monday. GrainCorp’s contribution will be made from existing cash and debt facilities.
The venture plans to operate grain handling facilities across Alberta and Saskatchewan, according to the statement. Construction is expected to be staged from the second half of fiscal 2016 to the end of fiscal 2018.
"This is an exciting opportunity to partner with one of the world’s most respected agricultural organizations and deepen our relationships with our international customers by growing our grain origination capability," GrainCorp Chief Executive Officer Mark Palmquist said in the statement.
Tokyo-based Zen-Noh is one of the largest agricultural organizations in the world with its 1,011 member cooperatives. The group controls almost 30 percent of the feed-grain market in Japan, the world’s largest importer of corn.