New joint venture will invest to quadruple facility’s annual capacity to 6 million metric tons
CHICAGO--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) announced today that it has
reached an agreement to sell to Glencore plc (LSE: GLEN) a 50 percent
stake in its export terminal in Barcarena, in the northern Brazilian
state of Pará. The ADM-Glencore joint venture that will own and operate
the facility following the transaction also plans to quadruple the
terminal’s capacity from 1.5 million metric tons to 6 million metric
tons.
“ADM is continuing to take actions to improve our returns on invested
capital,” said ADM CEO Juan Luciano. “One of the ways we’re doing this
is by taking an asset-light approach where it makes sense. This
agreement will both quadruple the capacity and increase the utilization
of this strategically located port facility, enhancing our ability to
serve the expanding Brazilian ag sector. And by sharing the investment
with a partner, we are able to do all of this in a cost- and
capital-efficient way.”
In addition to its increased capacity, the upgraded terminal will be
able to handle larger Panamax vessels, allowing the joint venture
partners to connect global markets more efficiently.
“The Barcarena terminal will continue to be a vital component of our
Brazilian logistics network,” said Valmor Schaffer, president, ADM South
America. “Agricultural production is expanding rapidly in northern and
western Brazil, and the Barcarena terminal is very well positioned to
capitalize on that growth. By quadrupling that terminal’s capacity, we
are also expanding our ability to serve growers here in Brazil, and meet
customer needs here as well as in Europe, Asia and other key global
markets.”
The transaction, which is contingent on regulatory approvals, is
expected to close during the first half of this year.
About ADM in Brazil
ADM is one of the largest agribusiness companies in Brazil. With more
than 4,300 employees, the company processes soy at four facilities, and
markets the soy oil brands Concórdia and Corcovado. The company operates
the largest biodiesel plant in Brazil, a cocoa processing plant, a sugar
cane processing facility that produces ethanol, and more than 40
elevators across the country. ADM is building a soy protein production
complex next to the company’s existing soybean processing facility in
Campo Grande, Mato Grosso do Sul.
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