COFCO reorganizing biofuels assets as part of larger restructuring

In China, COFCO’s China Agri-Industries Holdings has sold COFCO Biofuel Holdings Ltd. and COFCO Biochemical Holdings Ltd. to COFCO Bio-chemical Investment Co. Ltd. for a total $1.1 billion as part of a major restructuring exercise meant to streamline its businesses into 18 areas. The biofuel and biochemical companies produce and trade corn-based ethanol as well as animal feed and crude oil. Part of the move is to align the companies with COFCO Bio-chemical Investment who has more experience with biofuels and is meant to help the others better deal with ongoing subsidy reductions.