Archer Daniels Midland Company and Cargill are launching a joint venture that would own and operate the National Vegetable Oil Company soy crush facility in Borg Al-Arab. The deal also includes a separate Switzerland-based merchandising operation that would supply soybeans to the crush plant and also all the related commercial and functional activities in Borg Al- Arab. Expansion of the plant from 3000 metric tons to 6000 metric tons of daily crush capacity will be undertaken by Cargill. The plant aims to produce higher protein soybean meal in Egypt.
According to 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. 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, ADM’s president, EMEA Oilseeds crush added the following:
“ADM is adding to its geographic footprint in regions of expanding growth, and we’re particularly pleased to continue to enhance our capabilities in Egypt. Egypt is an important market where demand for high-quality soybean meal and oil is outpacing the rest of the world. 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.”
The joint venture will be managed by equal ownership of ADM and Cargill which will be a standalone entity. The management team will report directly to the board of directors that is appointed by ADM and Cargill. However the joint venture doesn’t include, Cargill’s grain business and port terminal in Dekheila, or the ADM-Medsofts joint venture at the Port of Alexandria
Subject to regulatory review, the deal is expected to be launched in the mid-2018.
Headquartered in US, Cargill Inc. is a multinational corporation. Cargill manufacturers and operates in food industry, agriculture industry, financial industry and industrial products and services. Cargill employs around 155000 employees around the globe operating in 70 countries and is committed to feeding the world in a responsible way while reducing environmental impact.
Founded in 1898, ADM procures, transports, stores, processes, and merchandises agricultural commodities, products, and ingredients in the United States and internationally operating through four main segments: Carbohydrate Solutions, Nutrition, Oilseeds, and Origination. Headquartered in the US, ADM offers oilseeds, corn, wheat, milo, oats, rice, and barley; and structured trade finance, as well as processes wheat into wheat flour and also sweeteners, starch, syrup, glucose, and dextrose; alcohol, amino acids, and other food and animal feed ingredients; ethyl alcohol; bio products; corn gluten feed and meal, and distillers’ grains; vegetable oil and protein meal; formula feeds, and animal health and nutrition products; citric acids and glycols; glucose and native starch; and contract and private label pet treats and foods, and specialty ingredients. ADM employs around 31300 employees globally.