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.
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.
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.
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