China National Cereals, Oils & Foodstuffs (COFCO), China's largest state-owned grain trader, said Wednesday it will invest 1 billion yuan (125 million US dollars) to build an ethanol plant in Guangxi, The Standard reported. Yue Guojun, head of COFCO's bio- chemical and bio-energy division, said the fuel ethanol plant would have an annual production capacity of 400,000 tonnes. It would use cassava, also known as tapioca, as feedstock. It will be one of the world's single biggest fuel ethanol plants using cassava. COFCO, the parent of COFCO International (0506), said it planned to become a leader in China's biofuel industry in the next five years. Beijing has said it plans to triple its fuel ethanol output to more than three million tonnes by 2010 to cut the country's dependence on imported oil and secure the income of hundreds of millions of farmers.