REGINA – A $87 million malting plant to be built in Qingdao, China is among nearly $9 billion worth of deals announced during a Canadian trade mission to Asia last week.
ITI World Investment Group Inc., XCAN Grain Pool Ltd. and the three Prairie pools have signed a letter of intent to form Asia Malt Corp., said ITI chair and chief financial officer Ron Will.
The plant will be built in two phases and operational by 1997, Will said. The first phase will cost $45 million U.S. and will produce 150,000 tonnes of malt each year. A $26 million expansion will double that.
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ITI sold more than 100,000 tonnes of Canadian barley to Tsingtao Brewery, the world’s second-largest brewer, in the past year.
ITI expects to announce a third partner – a “major North American malt company” – within a few weeks. XCAN and the wheat pools will be responsible to deliver the malting barley, while the third partner will take on design, construction and operation of the plant. ITI is responsible for sales to Chinese breweries.
Earlier this month, Prairie Malt of Biggar, Sask. also announced a joint venture with American and Chinese maltsters.
Another agreement signed in Shanghai has given WestCan Alfalfa of Regina exclusive rights to fill the import requirements of the Shanghai Dairy Corp. for pro-cessed alfalfa products.
Under the agreement, WestCan will provide Shanghai Dairy Corp. with technical assistance to improve the quality of feeding programs for livestock and to modernize its feed production facilities.
In exchange, WestCan will be guaranteed a market for its processed alfalfa. This is expected to mean a $3-million increase in sales for 1995.
Saskatchewan premier Roy Romanow, one of nine premiers participating in the Team Canada mission led by prime minister Jean ChrŽtien, said the signing of more than 50 business deals shows the team approach works.
He said he was encouraged by statements from Chinese premier Li Peng that long-term agreements to supply China with grain and potash are a top priority.
“So long as we continue to produce high-quality products at a competitive price, we will win our fair share of these long-term contracts and that is very encouraging news both for jobs and export sales in these important sectors,” Romanow said.
Other agricultural deals included an agreement with Canadian Agra Corp of Kincardine, Ont. to build a 100-million litre fuel ethanol plant in Jilin province and a letter of intent to open an Alberta Agriculture commercial office in Harbin.P. 16: War of words breaks out in Peace River vote
