BEIJING — Cargill, Inc. has finalized the purchase of intellectual properties for the production, sales and marketing of food ingredient systems from Peking University Green Technology Co. Ltd. (P.G.T.), Cargill announced this week.
The purchase will allow Cargill to use P.G.T.’s customer knowledge and food system expertise to develop China’s food industry further and better serve Chinese consumers, Cargill officials said.
The food ingredient systems market is an emerging industry in China, and P.G.T. is a pioneer in that area, Cargill said.
"This purchase is a win-win not only for Cargill and P.G.T., but also for Cargill and P.G.T.’s customers in China," said Gerrit Hueting, president of Cargill’s Starches & Sweeteners business unit in China. "The combined strengths of Cargill and P.G.T. in China is the best possible fit in the industry in terms of product, technology and employee skills."
Chen Wensheng, executive vice-president of Peking University, said P.G.T. officials made the move to gain access to the global market and take advantage of Cargill’s 140 years of management experience.
"The talented people whom the university has invested in will have the opportunity to continue to make a substantial and positive impact on the Chinese food industry and deliver high quality and value to Chinese consumers," he said. "Successful completion of this transaction will lead to stronger growth of China’s food ingredient industry."
China’s food market has experienced explosive growth in the past five years, Cargill noted. In 2003, China’s gross domestic product grew by 9.1% to U.S.$1.4 trillion, while the Chinese food industry achieved 17.6% growth to total U.S.$150 billion.
The food industry overall in China is expected to continue to grow by more than 10% a year in the next five years.
P.G.T. is a high-technology enterprise established at the end of 2000 with investment by Peking University. The company currently specializes in developing and producing food ingredient systems, primarily for the dairy industry, and employs 110 workers.
Because of a recent change to its business strategy, P.G.T. decided to dispose of part of its properties, including its food ingredient systems, P.G.T. officials said.