Gavilon LLC, Omaha, which recently signed a deal to acquire DeBruce Companies, Kansas City, Mo. (GM Oct. 25, p. 1), is continuing to grow its grain business, saying it plans to expand its business in China to support the company’s grain-trade initiatives in the Asia-Pacific region. In addition to fertilizer sales and supply activities, Gavilon Hong Kong Ltd. will provide destination marketing, logistics, and trade finance services for soybeans, corn, barley, wheat, and feed ingredients to support its North American and Australian grain origination volume.
“As global demand for agricultural commodities continues to grow, a strong presence in China will become increasingly important in the grain and oilseed markets,” said David Levine, vice president of Gavilon’s international division. “We are looking forward to expanding our agricultural network in China and further developing relationships with customers in the Asia-Pacific region.”
“This is not a new office location/entity for Gavilon,” said a company spokesperson. “We have conducted fertilizer sales/supply activity in Hong Kong for quite some time. What’s new is Gavilon’s grain activity from this office, led by Richard Cheung.”
Gavilon’s Hong Kong office will be managed by Richard Cheung, who will serve as general manager of the company’s grain business in China. Cheung has more than 15 years of experience supporting agricultural customers’ needs in the Chinese market. For business inquiries, please call + (852) 2851 1998.
In the meantime, Australian press reports are that Gavilon has been aggressively hiring senior grain traders from its competitors to staff its office in Perth, most notably from CBH Group.
Gavilon told Green Markets that it has been filling positions to staff its Perth office since the time the company announced it would establish an office in Western Australia. It said it has openly communicated its intent to hire and conducted interviews and screening processes as appropriate. “We have been fortunate to hire talent familiar with the Western Australian market to lead the commercial efforts at our Perth office and help us establish our presence in Australia’s major agricultural exporting region,” said a company spokesperson.
In early November, Gavilon Grain announced plans to construct a state-of-the-art, high-speed shuttle facility in Chester, Montana. The 600,000-bushel, slip-form concrete grain elevator will serve producers in north-central Montana. The Chester facility is expected to be fully operational in the fall of 2011.
“We are looking forward to expanding our Montana asset base and offering area producers efficient grain storage and handling services,” said Matt Gibson, director of merchandising and operations western region of Gavilon Grain. “The addition of Chester will support the growing demand for export wheat from the Pacific Northwest.”
In October, Gavilon announced that DeBruce will become a wholly-owned subsidiary of Gavilon. The closing was initially expected this month; however, the company told Green Markets last week that it will close upon receipt of regulatory approval, which is expected before the end of the year.