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. Last Updated: 07/27/2016

Cargill Plans $200M Expansion

American food and agriculture giant Cargill plans to invest $200 million expanding its business in Russia, according to Agriculture Minister Alexei Gordeyev.

Gordeyev, who met in the White House on Monday with David Rogers, the head of Cargill's European division, Cargill International SA, was quoted Tuesday as saying that the Minnesota-based company would invest the money in the construction of new plants and that the funds would begin arriving later this year.

Cargill's Moscow office said late Tuesday that it was awaiting word from its home office in the United States before releasing a statement.

Gordeyev said Cargill would pump $100 million into building a new crushing plant to make vegetable oil in Voronezh and $50 million into a malting plant in Tula.

The remaining $50 million will be invested in the company's Yefremovsky glucose and syrup plant, in which it has had a controlling stake since 1995.

The privately held conglomerate opened its Moscow office in 1991. It is involved in everything from trading grain and crude oil to processing meat, making steel, and financial services.

Cargill could face stiff competition in Voronezh. News reports in March said that Russian agricultural giant Rusagro had signed a contract with the regional administration to build its own $100 million vegetable oil factory. The factory is due to be completed in March 2005, a Rusagro spokesman said.

Cargill expects to post a net profit of $1.3 billion in 2003 on revenues of some $60 billion. It reported a profit of $798 million in 2002.

This week the conglomerate launched an international advertising campaign that employs the tag line, "Nourishing Ideas. Nourishing People," to encourage people to think of it more as a business partner than a provider of raw materials.