- ADM and Wilmar to strengthen their joint venture for the sale and marketing of refined vegetable oils and fats in Europe into a full-function joint venture with its own assets
ROLLE, Switzerland--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) and Wilmar International
Limited (SGX: F34) announced today that they have entered into an
agreement whereby Olenex, their partnership to market oils and fats in
Europe, will become a full-function joint venture with its own assets.
As part of the agreement, ADM will transfer two sites—a specialty oils
and fats facility and a palm refining plant in Hamburg, Germany—to the
new joint venture. Wilmar will transfer its tropical oils processing
plants in Brake, Germany and Rotterdam, the Netherlands. In addition to
processing, the joint venture will also integrate raw materials
sourcing, trading, and sales and marketing operations. The agreement
also stipulates that refined oils and fats from ADM’s other plants in
the Czech Republic, Germany, the Netherlands, Poland and the U.K. will
be marketed by Olenex.
“This new agreement will allow Olenex to operate more efficiently and
competitively, with a stronger brand presence and position in the oils
and fats market,” said Duane Holz, president of ADM’s European Oils
business. “By turning Olenex into a full-function joint venture, we will
not only meet customer demand for a single, integrated supplier for oils
and fats products, but we will also support ADM's strategic goal of
strengthening our European oils business for food products.”
Olenex started in 2012 as a partnership between ADM and Wilmar to market
oils and fats products in Europe. Strengthening Olenex into a
full-function joint venture with integrated assets is a strategic step
to build upon that partnership, leveraging complementary capabilities to
create value for the customer.
“Olenex is a recognized brand in the European oil and fats market,” said
Remond van Dorland, general manager of Wilmar's European Oil & Fats
operations. “The joint venture will be well-positioned to capitalize on
synergies between ADM and Wilmar and capture profitable growth
opportunities while delivering best-in-class service to customers.”
The agreement, which is subject to regulatory approvals, is expected to
close in the middle of 2016.
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,
industrial and energy uses. Learn more at www.adm.com.
About Wilmar
Wilmar International Limited, founded in 1991 and headquartered in
Singapore, is today Asia’s leading agribusiness group. Wilmar is ranked
amongst the largest listed companies by market capitalisation on the
Singapore Exchange.
Wilmar’s business activities include oil palm cultivation, oilseed
crushing, edible oil refining, sugar milling and refining, specialty
fat, oleochemical, biodiesel and fertiliser manufacturing and grain
processing. At the core of Wilmar’s strategy is a resilient integrated
agribusiness model that encompasses the entire value chain of the
agricultural commodity processing business, from origination and
processing to branding, merchandising and distribution of a wide range
of agricultural products. It has over 500 manufacturing plants and an
extensive distribution network covering China, India, Indonesia and some
50 other countries. The Group is backed by a multinational workforce of
about 92,000 people.
Wilmar’s portfolio of high quality processed agricultural products is
the preferred choice of the food manufacturing industry, as well as the
industrial and consumer food businesses. Its consumer-packed products
occupy a leading share in its targeted markets. Through scale,
integration and the logistical advantages of its business model, Wilmar
is able to extract margins at every step of the value chain, thereby
reaping operational synergies and cost efficiencies. Wilmar remains a
firm advocate of sustainable growth and is committed to its role as a
responsible corporate citizen.
About Olenex C.V.
Established in 2012 as a partnership between Archer Daniels Midland
Company and Wilmar International Limited for the sale and marketing of
refined vegetable oils and fats, Olenex C.V. offers an extensive range
of high-quality products and support services to customers in the
European Economic Area (EEA) and Switzerland. For more information about
Olenex’s offerings, visit www.olenex.com.
Archer Daniels Midland Company
ADM
Jackie Anderson, +1 (312) 634 8484
media@adm.com
or
Wilmar International Limited
Investor Relations
Ms. LIM Li Chuen, + (65) 6507 0592
lim.lichuen@wilmar.com.sg
or
Corporate Communications
Ms. Iris CHAN, + (65) 6216 0870
iris.chan@wilmar.com.sg
or
Olenex C.V
+ 41 (0)21 702 8000
+ 41 (0)21 702 8888
media@olenex.com