BUENOS AIRES, ARGENTINA — COFCO recently shuttered a soybean and sunflower oil refining plant in Argentina, according to Bloomberg.
The Chinese-based company cited poor economic conditions in Argentina and repercussions from the U.S.-China trade war as the reasons for closing the plant in Buenos Aires, Bloomberg reported.
COFCO said the plant closed “after a significant reduction in local demand, unfavorable market conditions and rising idling capacity.”
Argentina is in an economic recession in which interest rates have skyrocketed and its currency has lost half of its value in the past year.
COFCO said its decision to leave the soybean and sunflower refining business in Argentina will mean it can focus investments on sourcing oilseeds and crushing them for export, according to Bloomberg.
With 12,000 people in 35 countries, COFCO International is the overseas agriculture business platform for COFCO Corp., a Chinese-based food agriculture company.