ADM consolidates its position in Ukraine

30-03-2007 | |

Archer Daniels Midland Company (ADM) has bought the Ukrainian Ilichivsk Oil Extraction Factory. With this purchase, ADM consolidates it position into Ukraine’s promising agricultural market.

The Ukrainian sunflower seed business is one of the world’s top three
producers of this oil-bearing crop.
ADM and a company controlled by
Swiss-registered agricultural trading company and port operator Risoil first
entered a 50-50 joint venture in 2004 to develop the factory. This month,
however, ADM unveiled that it had bought out Risoil’s stake, taking a 100%
interest in the facility at an undisclosed price.

“The facility
complements our global asset base in an important origination location,” said
Mark Zenuk, ADM vice president and managing director-Europe and Asia. “We look
forward to working with Ukrainian farmers to help meet the changing needs of our
food customers due to evolving global demands,” he added.

Ukraine has
harvested 3-5 million tons of sunflower seed annually in recent years. Original
plans envisioned that the newly built facility would process 170,000 tons of
sunflower seed or soybean annually with capacity being increased in future
years.

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