CHS Reaches Agreement to Sell Portion of Necochea, Argentina Port Joint Venture to Noble Argentina
Date Posted: August 18, 2014
Buenos Aires, ArgentinaCHS Inc. (NASDAQ: CHSCP), North America's largest farmer-owned company and a global energy, grains and foods business, announced Aug. 18 it has reached agreement to allow Noble Argentina S.A. to acquire a portion of the CHS share of an export terminal joint venture at Necochea, a province of Buenos Aires, Argentina.
CHS Argentina currently own 30 percent of Sitio 0 de Quequen S.A. (Sitio 0).
After finalizing the transaction, CHS and Noble Argentina, a subsidiary of Noble Grain Group Ltd., will each hold 22.75 percent ownership in Sitio 0. Other terminal owners are South American grain companies E-Grain SA, A&J Nari SA, Alea y Companía SA and Lartirigoyen y Companía S.A.
"We are pleased to welcome Noble Argentina to this important export terminal venture," said Ignacio Bosch, general manager, CHS Argentina.
"For CHS, investing in this port on behalf of our farmer-owners allows us to efficiently serve our customers in Asia and elsewhere through access to a new, modern export facility in a key region of Argentina."
Now under construction, the first stage of Sitio 0 will consist of an export terminal with 119,000 metric tons of storage capacity and a high-speed loader with 1,200 metric tons per hour capability at one pier. A planned second stage would include an additional pier and 100,000 metric tons of storage.
Sitio 0 has the right to use the Quequen port for 45 years.
The first phase is expected to be operational by May 2015.
Necochea is located on the Atlantic Ocean, 528 km (328 miles) southwest of Buenos Aires at the mouth of the Quequen Grande River.
CHS will use the terminal to load soybeans, corn, wheat, sorghum, and barley and soybean meal sourced from the area southeast of Buenos Aires.
For more information, call 651-355-4946.