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COFCO incorporates logistics firm to boost status

Xinhua | Updated: 2013-03-29 10:07

BEIJING -- The China Oil & Foodstuffs Co (COFCO), a State-own grain and oil giant, announced Thursday that it has acquired a company specializing in grain storage and transportation.

The acquisition of the China Grain and Logistics Co (CGL), also a state-run company, is expected to further streamline COFCO's production chain and boost its market status.

The joining of CGL, which operates a strong storage and logistics system nationwide, will help COFCO upgrade its structure and build a more efficient grain industry system, said Ning Gaoning, chairman of COFCO.

The CGL, set up in 1995, has eight grain transshipment ports, four transport ships and more than 3,400 railway cars. It also owns the world's largest grain dock in northeast China, according to the chairman.

COFCO operates rice and corn plants in the major grain-producing provinces of Heilongjiang and Jilin. In 2011, its grain trade totaled 18 million tons.

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