With the 'Opening to the Outside World' of the Chinese economy from the late 1970's came the realisation that many industries, including sugar production, were in need of modernisation to promote greater efficiency and productivity.

In sugar, restrictions for foreign participation were lifted in 1990 giving access to a huge domestic market of 8 million tonnes per annum. Such a scenario provided an ideal background for BSO to become involved through its programme of Far East investment and global growth.

Bo Qing Joint Venture, Guangxi Province
BSO involvement with China's sugar industry commenced in 1995 when a joint venture was arranged with the Guangxi Yizhou Sugar Development Head Company's cane sugar refinery at Shibie in Guangxi Province, SouthEast China. BSO involvement doubled the plant's cane crush rate to 5,000 tonnes per day within eighteen months through investment in factory technology and training.

An agricultural programme, run in parallel with the plant improvement, has doubled the cane growing area and greatly increased sugar yield per hectare.

With a 60 per cent share of the joint venture, the BSO capital investment of some US$ 15.5 million made it possible to largely re-equip the plant with the latest production systems. In addition, BSO provided expertise and training in key commercial and financial control functions.

BSO now has majority control in four cane sugar factories in Guangxi Province:- Shibie and Huaiyuan, operated by the original Bo Qing joint venture, Bo Hua and most recently, Bo Xuan acquired in October 2001.

BSO’s cane sugar production in China has risen to 500,000 tonnes following an intensive investment programme. 

In October 2007, BSO formed a new joint venture in Northern China, BoTian Sugar Company Limited ("BoTian"), with the Hebei Tian Lu Sugar Group (“Tian Lu”). This JV is headquartered in Harbin in Heilongjiang Province, and initially owns and operates four beet sugar factories: Yi’an and Wangkai in Heilongjiang province, Zhangbei in Hebei province and Qianqi in Inner Mongolia. The JV has also taken over operation of 7 other mills across the region. Sugar production in these mills in 2006/07 was almost 250,000 tonnes.

The Company continues to actively seek further acquisitions.

Aims & Strategies

The main aim of BSO in Asia is to establish strong joint ventures with outstanding local producers, particularly where such companies also enjoy security of raw materials supply from indigenous sources.

Joint venture involvement with BSO introduces the potential for substantial cash investment as well as relevant technology and expertise in production and marketing. BSO has established an Asian regional office in Shanghai to support its commitment to a growing network of local operations.

The focus of BSO joint venture involvement is on domestic rather than export markets and its intention is to develop strong supply partnerships with secondary manufacturers and retailers. Through its own vast experience of working closely with leading multinationals, BSO has an intimate understanding of the very high standards demanded from a supply partnership and appreciates that such relationships can only be successfully achieved when suppliers are able to demonstrate a dedicated commitment to consistently high quality products, backed with modern commercial and logistics support. Accordingly, the requirements of local customers are taken fully into account as a vital component of any BSO investment decision.

ABF has made a long-term commitment to investing in Asia. Further developments are likely to be focused on the production of food and pharmaceutical intermediates in China and other Asian countries

Contact Information

British Sugar Consulting Services (Shanghai) Co. Ltd.
20/F Pacific Centre
No. 889 Yan'an Road West
Shanghai
PR CHINA
200050

Tel: +86 21 5240 2266
Fax: +86 21 5240 2500
E-mail: BSO - Shanghai

British Sugar (Overseas) Limited
Sugar Way
Peterborough
UK
PE2 9AY

Tel: +44 1733 422412
Fax: +44 1733 422457
E-mail: British Sugar Overseas