Tereos Announces the Acquisition of 50% of Redwood Indonesia
23 Jan 2014 --- French group Tereos, the world's fourth largest sugar producer and number three for starch in Europe, is establishing its presence in Indonesia with the acquisition in joint venture of 50% of Redwood Indonesia, the country's only corn starch facility. Redwood Indonesia, whose Cigading starch facility was inaugurated in the northeast of the island of Java in 2010, currently processes 330,000 tonnes of corn annually.
It produces and sells native starch and glucose syrups intended primarily for the domestic market, as well as gluten flour and gluten-based animal feed products. Redwood Indonesia is strategically located close to major consumption centers and one of the country’s leading cargo ports.
As Alexis Duval, Tereos' Chief Executive Officer, explains: "This acquisition is an important step in our strategy for development in growing markets. It follows our entry on the Brazilian starch market in 2011 and our move into China the same year in partnership with Wilmar. We are pleased to be joining forces with FKS, which has become one of the leading agro-industrial groups in Indonesia over the past 40 years, with strong positions in the sugar and cereal sectors".
Indonesia is currently the largest economy in South east Asia and has nearly 250 million inhabitants, making it the world’s fourth most populous country. It is also Asia’s third largest market for sweeten ers and one of the world’s main importers of corn starch and sugar. Considering its demographic growth and its rising middle class, Indonesia has significant potential for development. Founded in 1970, the FKS group is one of the main agro-industrial groups in Indonesia. More specifically, it is involved in the supply, transportation, storage and processing of agricultural raw materials, such as cereals, soya and corn. The group is also one of the country's leading importers, refiners and distributors of sugar.
Under this partnership, FKS will continue to enable Redwood Indonesia to benefit from its expertise in terms of the local markets for sugar, cereal and animal feed. The transaction is expected to be closed once the regulatory approvals have been obtained.
