BEIJING -- COFCO, China's largest grain and oil dealer, recently expanded its presence in the country's grain market by establishing two new rice processing plants in Northeast China's Heilongjiang province.

The creation of COFCO Rice (Suihua) Ltd and COFCO Rice (Wuchang) Ltd will raise the group's annual cereal handling capacity to 4.08 million metric tons.

In Heilongjiang alone, the company's rice processing capacity will top 1 million metric tons with the operation of two plants in the cities of Suihua and Wuchang, said Yu Xubo, president of COFOC.

The plant in Suihua has an annual rice processing capacity of 300,000 metric tons, while the Wuchang plant has a capacity of 100,000 metric tons.

The state-owned COFCO operates rice plants in the major grain-producing provinces of Heilongjiang, Jilin and Jiangxi.