China’s Fufeng Group is selecting a new site to build a corn mill in the U.S. after an earlier plan in North Dakota fell through amid heightened tensions between the world’s two biggest economies.
Hong Kong-traded Fufeng, which processes corn into biochemical products from monosodium glutamate to xanthan gum, is finalizing its decision on a location, according to an emailed statement to Bloomberg. The company’s Fufeng USA subsidiary is also advertising for engineering roles to aid in the design of the new wet mill.
The company had sought to build a $700 million facility in Grand Forks, North Dakota, but that project was abandoned in 2023 after it faced opposition linked to concerns over foreign entities owning property near U.S. military sites. Seed company Syngenta AG, which was acquired by China National Chemical Corp. in 2017, was also ordered to sell land in Arkansas due to its China ties.
It’s uncertain if Fufeng’s new U.S. plan will meet more opposition. China, the world’s top commodities importer, has been avoiding the purchase of American crops, with the ongoing trade dispute pressuring prices paid to American farmers.
The U.S. recently concluded an anti-dumping probe into xanthan gum from China, which investigated companies including Fufeng.
Fufeng remains “committed to selecting the best possible location for a corn milling facility to support our operations, our customers and our community in the US market,” it said in the statement.
One potential U.S. location is in Douglas County in central Illinois, according to a report earlier this year. Building in Illinois “would be a return to a major, stable employment base,” said Ken Dallmier, president of consultancy DemandSideAg whose family farm sits about 10 miles away.
Fufeng is also pursuing projects elsewhere. It signed an agreement to develop a corn processor worth $800 million in Kazakhstan, and is reportedly considering building a plant in Argentina.
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