- Expansion of Romanian port capacity will further strengthen origination and transportation network in Eastern Europe
CHICAGO--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) announced today that it has
reached an agreement to acquire complete ownership of North Star
Shipping and Minmetal, enhancing the company’s European origination and
transportation network through the addition of export facilities at the
Romanian Port of Constanta on the Black Sea. North Star and Minmetal
operate grain elevators and bulk commodity storage and warehousing as
well as port services, stevedoring operations and a shipping agency at
the mouth of the Danube River. ADM was previously a partner in both
North Star and Minmetal.
Among the assets included in the acquisition are:
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Ten vessel berths, including seven deep sea berths
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Port terminals with annual throughput capacity of up to 6 million
metric tons
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On-site grain storage capacity of 330,000 metric tons
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Two floating cranes for direct barge-oceangoing vessel transfer
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Mobile shore cranes and equipment
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A vacuum discharge and ship loader
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An iron ore and coal terminal located on 21 hectares
“This acquisition helps us to meet our goal of strategic expansion
though diversification and expansion of our trade and origination
territory,” said Joe Taets, president of ADM Europe Middle East and
Africa, and of the company’s Agricultural Services business unit. “We’ve
talked about the potential to double the volume of our grain business.
Here, we’re taking a great step in that direction with this strategic
expansion of our European network. By becoming full owners of these
facilities on the Black Sea, we’re building on the investments we have
made in our Danube River network since 2011, which enhances our
origination, logistics and export capabilities in Eastern Europe, and
allows us to reach more customers around the globe.”
The Port of Constanta sits on the Black Sea at the mouth of the Danube
River, and is one of the most strategically significant ports in the
region. The Danube River outlet into the Black Sea makes the Port of
Constanta the primary ingress and egress point for bulk commodities
being traded into and out of Romania, Bulgaria, Serbia and Hungary.
In 2011, ADM announced a substantial expansion of its grain origination,
storage, transportation and export operations along the Danube River.
Today, the network includes eight elevators on the Danube, with two more
under construction; two inland origination facilities; shallow water
port facilities in Braila; and 50 barges and six tug boats. The new
Constanta Port assets add to those origination, logistics and processing
capabilities in Romania and Eastern Europe.
ADM, through its minority stake in North Star and through Minmetal—a
separate 50-50 joint venture owned by ADM and North Star—previously
owned approximately 45 percent of the Constanta assets.
Forward-Looking Statements
Some of the above statements constitute forward-looking statements.
ADM’s filings with the SEC provide detailed information on such
statements and risks, and should be consulted along with this release.
To the extent permitted under applicable law, ADM assumes no obligation
to update any forward-looking statements.
About ADM
For more than a century, the people of Archer Daniels Midland Company
(NYSE: ADM) have transformed crops into products that serve the vital
needs of a growing world. Today, we’re one of the world’s largest
agricultural processors and food ingredient providers, with more than
33,000 employees serving customers in more than 140 countries. With a
global value chain that includes more than 460 crop procurement
locations, 300 ingredient manufacturing facilities, 40 innovation
centers and the world’s premier crop transportation network, we connect
the harvest to the home, making products for food, animal feed, chemical
and energy uses. Learn more at www.adm.com.
Archer Daniels Midland Company
Media Relations
Jackie Anderson, 312-634-8484
media@adm.com