Cargill Worldwide

Cargill Acquires Full Ownership of Its Xanthan Gum Joint Venture in China

7 August 2006

    Contacts: China: Catherine Zhang, 86-10-84863191
    Asia: Bruce Blakeman, 65-6393-0704
    US: Bill Brady, 952-742-6608
    Europe: Geraldine O’Shea, +44 1932 861174

BEIJING and MINNEAPOLIS — Cargill announced today that it has acquired 100 percent ownership of Zibo Cargill Huanghelong Bioengineering (ZCHB) located in Zibo, China. Cargill bought the shares from its joint venture partner, the Shandong Huanghelong Group. ZCHB was formed in April 2003 to produce xanthan gum and was expanded in 2004. The facility will now be fully integrated into Cargill’s Texturing Solutions business as a key component of Cargill’s texturizing ingredients portfolio.

“This transaction, together with the acquisition of Degussa Food Ingredients in April 2006, is in line with Cargill's strategy to become one of the top ranking producers of xanthan gum worldwide,” said Cargill Corporate Vice President Robert Parmelee, who leads the company’s Food System Design businesses. “ZCHB is already one of the most technologically advanced xanthan gum plants in China. With our recently expanded hydrocolloids team, we are now in a position to further improve our Chinese production by transferring some state-of-the-art knowledge from our French facility in Baupte to ZCHB. Our xanthan gum range will now be complete, from industrial to specialty food and cosmetic grades including clear, granulated, dispersible and allergen free. This will complement our overall unmatched texturizing offering, ranging from single ingredients like xanthan gum, pectin, soy proteins and starches to functional texturizing systems, cultures and lecithin.”

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About Cargill
Cargill is an international provider of food, agricultural and risk management products and services. With 149,000 employees in 63 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed.

Cargill started trade with China soon after President Nixon’s visit in 1972. Cargill’s annual trade value with China today exceeds US$ 3 billion. Currently, Cargill sells grains, oilseeds, steel products, sugar, fruit juices, meats, cotton and other commodities to China while exporting Chinese commodities such as steel, apple juice and corn. Cargill operates 27 wholly owned companies and joint ventures within 16 provinces in China. Projects range from soybean crushing in Guangdong to corn processing in Jilin and animal feed production in Sichuan. Cargill and its joint ventures employ over 3600 people in China.

Cargill's Food System Design (FSD) platform
FSD is a group of specialty ingredient businesses that formulates integrated food solutions for customers. FSD works closely with its customers to produce innovative products and services that deliver nutritious, convenient and good tasting food.

Shandong Huanghelong Group (SHG)
SHG has been in operation since 1922, and is a regional liquor manufacturer. SHG has 1000 employees and is located in Zibo, Shandong Province, PRC.