ADM & Cargill complete agreement for soybean venture in Egypt
03 Jul 2018 --- Archer Daniels Midland Company (ADM) and Cargill have completed the agreement for their soybean joint venture in Egypt, after receiving all relevant pre-closing regulatory clearance and formally launched SoyVen, their new project to provide soybean meal and oil for customers in Egypt.
SoyVen owns and operates the National Vegetable Oil Company soy crush facility in Borg Al-Arab, along with related commercial and functional activities, including a separate Switzerland-based entity supplying soybeans to the Egypt crush plant. The plant’s daily crush capacity has been doubled to 6,000 metric tons to meet increasing Egyptian demand for higher-protein soybean meal and oil, reducing the need for imports.
The new company, which will function as an independent entity, is headed by Chief Executive Officer, Ahmet Ertürk, who previously held global management positions in Cargill’s malt and grains and oilseeds businesses.
“By bringing together the strengths and capabilities of both Cargill and ADM in Egypt, this joint venture is uniquely positioned to meet specific customer needs in the growing Egyptian market,” notes Ertürk.
“Both ADM and Cargill recognized the opportunity and value to form a joint venture company dedicated to focusing on the Egyptian market. SoyVen is well positioned to service the growing demand for a reliable and high-quality source of soybean meal and soybean oil, for the animal feed and food manufacturing industries, which are vital for the Egyptian economy,” he tells FoodIngredientsFirst.
“The launch of SoyVen means it is well positioned to service the growing demand for reliable and high-quality sources of soybean meal and soybean oil and it is confident customers will turn to SoyVen as the premier provider in Egypt,” Ertürk adds.
“The demand for high-quality soybean meal and oil from both the food manufacturing and animal feed sectors continues to rise and I’m confident that customers will turn to SoyVen as the premier provider in Egypt.”
The joint venture consists of ADM and Cargill each holding a 50 percent interest, with the management team reporting to a board of directors appointed by the two parent companies. The joint venture’s assets do not include Cargill’s grain business and port terminal in Dekheila, or the ADM-Medsofts joint venture at the Port of Alexandria. Each company will continue its separate business activities in the country and region.
SoyVen will have offices and operations in Cairo and Borg Al-Arab in Egypt, as well as offices in Rolle, Switzerland.
By Elizabeth Green
