Recently, the reporter has been informed from the Management Committee of Tianjin Port Free Trade Zone that, the construction of expansion of 48,000 tons raw grain storage project invested by Lida Creal and Oil Technology (Tianjin) Co., Ltd. (hereinafter referred to as "Lida Creal and Oil Technology") has been officially commenced, and it is expected that the construction of the main body will be basically completed by the end of this year.

It is reported that the Project, with a total investment of RMB 77.58 million, is located in the Lingang Economic Zone of Tianjin Free Trade Zone, with a total planning land area of 145.12 square meters and a total construction area of 654.17 square meters, and will have 12 newly-established silos, thereby realizing a total storage capacity of 48,000 tons. Upon completion, the Project will be used in conjunction with the original silos, and connected with the original silos of Lida Creal and Oil Technology, so as to fully leverage the advantages of Tianjin port, further enhance the storage and use of imported grains, and comprehensively improve the economic benefits of the Company. By then, the annual turnover of raw grain of Lida Creal and Oil Technology will reach 300,000 tons, including 95,000 tons of opportunity grains purchased (50,000 tons of imported grains, 35,000 tons of summer harvested grains, and 10,000 tons of alternating grains), and the annual output value will be increased by RMB 200 million compared with the current level, reaching about RMB 900 million.

"This expansion of the raw grain storage project is the necessity of the development of the Company, the original warehouse can no longer satisfy the demands of the development of the Company.” Qiao Wenfang, general manager of Lida Grain and Oil Technology, said, "Tianjin port is the main evacuation port for imported wheat. The annual import volume is more than 1 million tons, the single batch purchase volume is large (about 60,000 tons per ship), the dry port time is short, the free stack period is only 14 days, and the port and imported wheat resources cannot be fully utilized if there is no sufficient storage capacity."

Qiao Wenfang comments that, the annual rotation of grain reserves in Tianjin is about 650,000 tons, and the rotation of reserve grains is placed centrally, the warehouse discharge period is relatively short (30 days) and the price is highly volatile. If the warehouse capacity is insufficient, it is difficult to seize the opportunity grain sources, "every year, after the new wheat is marketed, farmers sell grain centrally in June and July, during which the price advantages of wheat are obvious. By seizing the low-price window to build strategic reserves, it is possible to reduce costs while securing advantageous sources of grain.” According to the 14th Five-Year Plan of Lida Grain and Oil Technology, it is expected that the annual demand for wheat will reach 302,000 tons in 2025, and the total amount of standing stock will reach about 53,000 tons, therefore, it is imperative to expand the storage project.

Lida Grain and Oil Technology is a high-end specialized flour production base of COFCO Group, which was officially put into operation in August 2020. The Company has 2 flour production lines with a daily wheat processing capacity of 1,000 tons and an annual wheat processing capacity of 300,000 tons, and adopts mainly imported wheat, and the wheat flour processing technology has reached the advanced level in China. Relying on the prominent superiority of being adjacent to Tianjin Port and convenient transportation of imported wheat, Lida Grain and Oil Technology has already established the product structure of high, medium and low-grade bread flour, cookie flour, pastry flour, noodle flour, etc. The Company was awarded the title of "Tianjin Excellent Cereals and Oils" in 2020 and 2021 consecutively, and has passed five certification systems, namely ISO9001 Quality Management System, HACCP System Certification, ISO14001 Environmental Management System, ISO22000 Food Safety Management System and FSSC22000 Food Safety System. Assuming the responsibility of guaranteeing food security in Beijing, Tianjin and Hebei and enabling the general public to consume assured food, Leader Grain & Oil Technology has been committed to fulfilling the responsibility of stabilizing the national economy, promoting the healthy development of the grain industry, and "Guaranteeing the Supply, Stabilizing the Prices, and Benefiting the People's Livelihood".

The report to the 20th National Congress of the Communist Party of China pointed out that high-quality development is the primary task of comprehensively building a modern socialist country, and that efforts should be made to promote the strengthening of state-owned capital and state-owned enterprises. Tianjin Port Free Trade Zone serves as an important platform for the open economy of China and an important pivot for the coordinated development of Beijing-Tianjin-Hebei region and the "Belt and Road" initiative. With years of development, Tianjin Port Free Trade Zone has now become the largest grain and oil industry cluster in North China, with integrated grain and oil processing, storage, trade and logistics. In the future, the Free Trade Zone will continuously consolidate the dynamic power of high-quality development with the spirit of the 20th National Congress of the Communist Party of China, fully leverage its own advantages in industry, policy, location and resources, adhere to the principle of "project-first", make every effort to create a first-class business environment, and contribute to the power of the Free Trade Zone for the construction of a pioneer zone of socialist modernization, the core area of "One Base and Three Zones", a demonstration zone of high-quality development, a northern hub of the domestic general circulation, and an important strategic pivot for the domestic and international double-circulation in Tianjin.