Tate & Lyle Offloads Moroccan Corn Processing Plant to ADM
09 Feb 2016 --- Tate & Lyle, the maker of artificial sweetener Splenda, is selling off its small, corn wet mill in Morocco to US company Archer Daniels Midland (ADM), as the British company looks to focus on its Speciality Food Ingredients business across Europe, Middle East and Africa.
The deal is the latest effort by ADM, a food processing and commodities trading company, to increase its presence in the starch and sweetener market after already making inroads in Europe in 2015.
In particular, the Chicago-based business is looking to become a bigger player in higher-margin products such as corn syrup.
The plant, located in Morocco’s capital Casablanca, marks the first time that ADM will operate a corn processing operation in Africa.
Jackie Anderson, a spokesperson from ADM told FoodIngredientsFirst: “The Morocco plant is the leading sweetener and starch supplier in a country that should see substantial demand growth in the coming years. It is well-positioned to serve Moroccan customers as well as Mediterranean export markets. This also represents an opportunity to help introduce a wider range of ADM food and feed ingredients to the Moroccan market.”
Chris Cuddy, president of ADM’s Corn Processing business unit, said: “The Morocco plant, which serves both global and regional customers in the food, feed, paper and corrugated board industries, is a great addition to our global sweeteners and starches footprint.”
ADM has existing business relationships with Tate & Lyle.
Last year, ADM announced it was taking full control of corn wet mills in Bulgaria and Turkey which were part of the pair’s Eaststarch CV joint venture.
Sweetener makers have been targeting growth in emerging markets across Africa to offset slowing sales in the US and Western Europe.
Earlier this month, ADM reported net income of $718m in its fourth quarter, up from $710m a year earlier, however its sales performance was below expectations.
Last year, Tate & Lyle issued a succession of profit warnings, after it was hit by weak trading of its sweetener business.
by John Reynolds
