Sweet Business - COFCO Footprint in Australia Sugar Industry

Transcription

1 2015/IEG/WKSP/011 Session: 3 Sweet Business - COFCO Footprint in Australia Sugar Industry Submitted by: COFCO Workshop on the Best Practice of the Sustainable Investment in APEC Region Beijing, China 9 February 2015

2 中澳甜蜜之旅 中粮屯河 Tully 糖业 Sweet Business COFCO Footprint in Australia Sugar Industry Sugar department of COFCO TUNHE 于作江 Yu Zuojiang 2015 年 2 月 9 日 Feb 9,2015 1

3 中粮食糖业务快速发展 The sugar business of COFCO has developed rapidly After 55 years of experience and accumulation, a value chain of processing-refiningtrading has been formed in COFCO TUNHE Sugar cooperation with Cuba Sugar distribution system China joint in the WTO COFCO bought TUNHE In 1960, China and Cuba signed an agreement of long-term import of sugar COFCO began its sugar business China reformed the Sugar circulation system in Sugar was allowed to trade freely. Therefore, COFCO s sugar business gained rapid development Since China joined the WTO, the sugar business of COFCO has grown rapidly. COFCO s sugar imports have accounted for more than half of China's total imports COFCO bought TUNHE in 2005, and began its beet sugar business COFCO acquired a 100% share in Australia Tully Sugary in 2011, and began its cane sugar business 2014 年 a largescale acquired b usinesses COFCO acquired 51% share in Noble Sugar in 2014, and set up a joint venture A refined sugar project in Caofeidian was started in July The annual output is expected to be 500 thousands tons COFCO bought Huafu Trade & Development Group Corp in

4 中粮屯河糖业版块迅速扩大 Remarkable growth of the sugar business scale in COFCO TUNHE COFCO acquired the agribusiness of Noble Group and Huafu Trade & Development Group Corp, which has made the sugar supply capacity increase to 4.75 million in three years. COFCO Sugar Platforms Holding 51% Holding49% Sugar department of COFCO TUNHE HUAFU Sugar Noble Sugar South Sugar North Sugar Overseas Sugar Sales Department Sugar Imp/Exp Dep. Refinery B2B Sguar Prod. Zhongtang Corporation Sugar Sales Sugar Imp/Exp B2C Sugar prod. China Merchandise Reserve B2C Sugar sales Storage and Logistics Sugar Dep. Sugar trading Sugar Sales Brazil Sugar Prod. Prot logistics Noble Group 3

5 把握商业时机, 中粮收购澳洲 Tully 糖业 Catching a business opportunities, COFCO acquired Tully Sugar 1925 Tully started crushing in Tully mill turned into a limited company in 1990 Tully Sugar In 2011,COFCO acquired a 100 percent share in Tully Sugar Achieve new record highs for both crushing and sugar production in

6 优化产业结构, 扩大产能 Modifying the industrial structure, expanding capacity Since Tully was acquired by COFCO, large amounts of capital investment and maintenance were taken for capital expansion. In 2014, new record highs were set for Tully s raw sugar. Tully s crushing amount in recent years Capital expenditure and maintenance (ton) costs of Tully(Australian Dollar) 1,773,537 2,338,000 2,436,800 10,551,328 资本性投资 CAPEX 11,367,723 维修维护费 Maintenance 10,097,815 1,158,077 5,516,183 6,821,780 12,692,958 10,807,882 12,103,

7 建立平衡董事会, 推行 6S 管理体系 Establishing a board of directors in balance, popularizing the 6S management system Balanced Board of Directors Initially, COFCO appointed the sugar cane directors, the COFCO director and independent directors as the board of directors. The sugar cane directors were the chairman of Tully sugar. In August 2014, the COFCO director was elected by the board of directors of Tully sugar as chairman. A board of directors with a balanced " " structure was formed. Strategy system 6S strategic control system Management Assessment system 6S Budget system Performance assessment system Management reprot System Internal Audit system 6

8 依靠当地团队, 开展日常工作 The performance of daily operations by the local team Daily operations still performed by the local team COFCO didn't adjust Tully s management, it only sent two grassroots workers to Tully sugar to help communicate with COFCO headquarters. Build up risk control COFCO established a risk control department to monitor global trade risks Implementing the COFCO investment review system The COFCO investment review system was implemented, to ensure that the factory capacity matched with the sugarcane crushing amount. 7

9 加强产业协同, 组织技术交流 Strengthening industrial cooperation, and organizing technical communication Inviting Tully s board to visit COFCO headquarters and domestic mills Coordinating the relationship with QSL Organizing agricultural technology communication Synergy emerged through sugar industry communication Storage expense decrease by A$11/tonne of sugar, A$3m annual savings Australian expert provided technical support in variety selection, soil testing, fertilizer and pest control 8

10 加强相互了解, 发挥资源优势 Deepening mutual understanding, making use of the resource advantage Trade communication Introducing the COFCO in detail and putting forward some initial ideas of an Australian sugar independent marketing system Understanding the ideas and expectation of cane growers. Cane-growers meeting Regularly organizing cane growers meetings and inviting agricultural experts to teach the cane growers. Offering loans to cane growers Offering loans to cane growers, ensuring the sugar cane planting. International purchasing Making full use of the advantages of the global purchasing network of COFCO, helping Tully reduce costs. 9

11 利用中粮优势资源, 协同发展 Making full use of the resource advantage, developing in coordination In order to reduce sales costs and provide growers with a cheaper and more efficient pricing system, the COFCO Hongkong trading team is fully utilized to reduce financing and pricing costs Expending collaboration among Noble Agri, Hongkong, Australia and COFCO in international sugar trading, with the strength of Huafu domestic sugar production and storage, and the guild COFCO sugar integrated value chain Tully-Hongkong cooperation model With complementary advantages, establish win-win cooperation, achieve common development Tully-Hongkong-Noble-HuaFu COFCO HK Trading advantages Mutual grantee Tully Full industry chain and resources Cooperative research 10

12 发展生态友好型农业, 强化研发力量 Developing ecological agriculture, enhancing research and development TSL pays full attention to agricultural sustainable development, including reducing pollution, developing a circular economical business model and improving product utilization Developing RD&E Cooperating with SRA, BSES and SRI to develop green agriculture. Supporting the research of ASMC and SRI. Strengthening environmental protect ion Appropriate use of nitrogen and phosphorus fertilizers. Protecting the Great Barrier Reef coral areas. TSL RD&E expenses (Australian Dollar) 120, ,000 80,000 78,210 ASMC SRI 91, ,642 60,000 40,000 20,000-2,941 4,232 5, Developing a cyclical economy Tully uses waste bagasse to generate electricity. Ash will be used as land fertilizer and waste water can be used for cyclic heating. 11

13 支持当地就业, 推劢人才培养 Supporting the local workforce, pushing forward personnel training Supporting the local workforce Developing an international talent team Selecting excellent staff Creating about 285 jobs for the local workforce. In 2013, TUNHE started an Overseas Talent Training Plan. Young employees are selected to participate in the overseas rotations internship. Providing opportunities for excellent staffs to travel in China. Improving employees' understanding of COFCO. 59 Tully permanent and seasonal employee Permane nt, /13 13/14 14/15 12

14 劣力公益发展, 提出社区共建 Commitment to the public good Providing technical information Tully sugar is a major sponsor to promote local skills. Staff are selected to introduce agricultural knowledge to the local high school and nearby residents each year. Funding community activities Tully sugar board pays $40000 per year to support the local community activities Provides medical equipment support to the local Red Cross and hospitals Funds $200 per year to the local high school to hold the school sports meeting Supports the local football Club Apprenticeship project 10 apprentices are selected by Tully to learn skills from experienced staff 13

15 相互尊重文化, 塑造良好企业氛围 Respecting cultural differences, cultivating a favorable work atmosphere COFCO is devoted to establishing mutual cultural understanding. Respecting local culture Great differences exist between foreign countries and China. COFCO implements a people-oriented strategy, trying to strengthen communication with local people and fully understand the local customs. Creating a good image In order to gain the recognition of the local community, TUNHE make efforts to promote COFCO culture, and support community activities. 14

16 践行社会责任, 提高企业认可度 Fulfilling social responsibilities, increasing the company s reputation By establishing an efficient management system, maintain good employee management relationship, COFCO fulfill corporate social responsibility and maintain their enterprise image. comply with local environmental regulations and Create jobs and provide training opportunities Make large amounts of capital investment, expand the sugar supply capacity Establish board of directors in balance, development in coordination protect the interests of health and safety laws sugar cane 15

17 Thank You Welcome to Tully 16 16