Archer Daniels, Cargill Plan Egypt Soybean Venture
By Colin Kellaher
Archer Daniels Midland Co. (ADM) and Cargill Inc. Monday said they plan to launch a joint venture to provide soybean meal and oil for customers in Egypt.
The agribusiness giants said the venture would own and operate the National Vegetable Oil Co. soy crush facility in Borg Al-Arab, along with related commercial and functional activities, including a separate Switzerland-based merchandising operation that would supply soybeans to the plant.
Cargill is expanding the plant to 6,000 metric tons of daily crush capacity from 3,000 metric tons. The plant will be able to produce higher-protein soybean meal while reducing the need for soybean meal imports into Egypt, the companies said.
ADM and Cargill said the venture, which they hope to formally launch in mid-2018, will be managed as a standalone, equally-owned entity.
The venture's assets won't include Cargill's grain business and port terminal in Dekheila, or the ADM-Medsofts joint venture at the Port of Alexandria. The companies also said they will continue their separate business activities in the country and region.
Write to Colin Kellaher at firstname.lastname@example.org
(END) Dow Jones Newswires
February 26, 2018 06:39 ET (11:39 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.