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Contacts: Bill Brady - Cargill U.S., 952-742-6608 Cargill and Hatco Announce Plans for Joint Venture to Make Specialty Esters in China MINNEAPOLIS, MN and FORDS, NJ - September 8, 2004 - Cargill and Kaufman Holdings, parent company of Hatco Corporation, today announced their intention to form a joint venture to produce specialty esters in China. The joint venture would build a world-class manufacturing facility in the vicinity of Shanghai to serve the Asia market with high performance esters and formulated synthetic lubricants for refrigeration, automotive, industrial, metalworking and oil drilling applications. Construction would begin in late 2004 and be completed by the end of 2005. This joint venture would combine Cargill’s strength in manufacturing and supply chain efficiency with Hatco’s expertise in developing and marketing high performance synthetic esters. Led by a board of directors with equal membership from Cargill and Hatco, the joint venture would focus its marketing efforts on the Asian market. Alex Kaufman, chief executive officer of Kaufman Holdings, said, "We are pleased to join forces with Cargill, a leading global manufacturer and distributor with an extensive and respected presence in China. China has the fastest growing manufacturing sector in the world, and there is increasing demand for high performance esters and formulated synthetic lubricants throughout Asia. A facility in China would enable us to serve that fast-growing demand. Establishment of this joint venture, together with our manufacturing units in the United States, Germany and Brazil, would complete our commitment to worldwide production and distribution of polyol esters." This is Cargill and Hatco's second project in high performance esters and formulated synthetic lubricants. It follows the establishment of Innovatti-Industria e Comercio de Esteres Sinteticos, Ltda., a pioneering entry into the Latin American market with manufacturing facilities in Mairinque, Brazil. "China’s expanding economy and tremendous industrial growth is creating significant opportunities for the specialty esters market," said Kurtis Miller, vice president and head of Cargill’s Industrial Oils & Lubricants business. "We look forward to expanding our partnership with Hatco to serve this increasingly important part of the world." For more than 55 years, Hatco Corporation has been the technology leader in the specialty ester business. Its polyol esters are used worldwide as base stocks for synthetic lubricants in refrigeration, automotive, aviation and industrial applications, as well as in hydraulic fluids. Cargill operates 23 wholly owned companies and joint ventures in China. Its Chinese operations produce fertilizers, animal feed, specialty food ingredients and other products, employing more than 2,400 people. Kaufman Holdings (www.kaufmanholdings.com) Cargill Industrial Oils and Lubricants (www.cargill.com) |