Archer Daniels Midland said it has bought three grain elevators in Slovakia, moving into the Eastern European country for the first time and expanding its operations on the key Danube River.
The Decatur, Illinois, USA based company, one of the world's largest grain traders and processors, said that the silos will enable it to secure additional rape and sunflower seed, as well as corn and wheat from new supply sources.
"The acquisition of these elevators extends ADM's origination network into Slovakia and along the Danube River, advancing our strategy to grow our reach in Central and Eastern Europe," said Tido Boehle, general manager of Origination and Terminals in Europe.
"The facilities will store and supply crops for our European processing facilities and will help us better serve the local farming community by connecting local crops to export markets."
Grain merchandisers are focusing on strengthening their presence in the region, with ADM already expanding its network along the Danube in Romania as it looks to shift its growth plans, with an emphasis on expanding oilseed crushing capacity.
The three new facilities, located in the south and east of Slovakia, have been purchased from Palma Group and Polnonakup Hont. They have a combined storage capacity of 149,000 metric tons, as well as train loading capabilities, ADM said.
ADM operates oilseed processing facilities in the Czech Republic, Germany, Netherlands, Poland, the UK and Ukraine, and also has a joint venture with Tate & Lyle that operates wet corn mills in Bulgaria, Hungary, Slovakia and Turkey.
ADM said its most recent acquisitions complement the joint venture Eaststarch operations, as it can now supply corn to the Boleraz site in Slovakia.