CHICAGO — Archer Daniels Midland Co., Chicago, and Cargill, Minneapolis, have agreed to partner in a new joint venture that will focus on delivering soybean meal and oil to customers in Egypt.
As part of the joint venture, the companies will own and operate the National Vegetable Oil Company’s soy crush facility in Borg Al-Arab, Egypt. Additionally, the joint venture will own and operate other commercial and functional activities, including a separate Switzerland-based merchandising operation that would supply soybeans to the crush plant in Egypt.
Cargill, which has been active in Egypt since 1994, said it is expanding the Borg Al-Arab facility to 6,000 tonnes of daily crush capacity, up from 3,000 tonnes. The expansion is expected to allow the facility to produce higher-protein soybean meal while reducing the need for soybean meal imports into Egypt, Cargill said.
|Roger Janson, head of Cargill’s grain and oilseed business in EMEA|
“The joint venture brings together Cargill and ADM’s operational and commercial expertise to meet growing local demand for higher-quality feed ingredients,” said Roger Janson, head of Cargill’s grain and oilseed business in EMEA. “This deal is part of our strategy to grow Cargill’s business across Egypt and the North Africa region and helps us better serve customers in the market with safe, affordable and nutritious food.”
John Grossmann, president of ADM’s EMEA Oilseeds crush unit, said partnering in the joint venture is part of ADM’s strategy to add to its geographic footprint in regions of expanding growth.
|John Grossmann, president of ADM’s EMEA Oilseeds crush unit|
“Egypt is an important market where demand for high-quality soybean meal and oil is outpacing the rest of the world,” Mr. Grossmann said. “By bringing together expertise and resources from two great companies, and by utilizing an existing facility and infrastructure, this joint venture would be perfectly positioned to efficiently meet growing Egyptian demand.”
ADM and Cargill will equally own the joint venture, and a management team will report to a board of directors appointed by both companies. The joint venture does not include Cargill’s grain business and port terminal in Dekheila, Egypt, or the ADM-Medsofts joint venture at the Port of Alexandria in Egypt.Each company will continue its separate business activities in Egypt and in the region.