ADM Buys Slovakian Grain Elevators, Upgrades Presence On Danube
January 04 2012 - 10:55AM
Dow Jones News
Archer Daniels Midland Co. (ADM) said Wednesday it has bought
three grain elevators in Slovakia, moving into the Eastern European
country for the first time and expanding its operations on the key
Danube River.
The Decatur, Ill., company, one of the world's largest grain
traders and processors, said that the silos will enable it to
secure additional rape and sunseed, as well as corn and wheat from
new supply sources.
"The acquisition of these elevators extends ADM's origination
network into Slovakia and along the Danube River, advancing our
strategy to grow our reach in Central and Eastern Europe," said
Tido Boehle, general manager of Origination and Terminals in
Europe. "The facilities will store and supply crops for our
European processing facilities and will help us better serve the
local farming community by connecting local crops to export
markets."
Grain merchandisers are focusing on strengthening their presence
in the region, with ADM already expanding its network along the
Danube in Romania as it looks to shift its growth plans, with an
emphasis on expanding oilseed crushing capacity.
The three new facilities, located in the south and east of
Slovakia, have been purchased from Palma Group a.s. and Polnonakup
Hont a.s. (POH.BS). They have a combined storage capacity of
149,000 metric tons, as well as train loading capabilities, ADM
said.
The company operates oilseed processing facilities in the Czech
Republic, Germany, Netherlands, Poland, the U.K. and Ukraine, and
also has a joint venture with Tate & Lyle PLC (TATE.LN) that
operates wet corn mills in Bulgaria, Hungary, Slovakia and
Turkey.
ADM said its most recent acquisitions complement the joint
venture Eaststarch operations, as it can now supply corn to the
Boleraz site in Slovakia.
-By Michael Haddon, Dow Jones Newswires; 4420-7842-9289;
michael.haddon@dowjones.com
(Ian Berry in Chicago contributed to this article.)