ADM and Global Bio-chem Team to Distribute Sweeteners in Asia, Lysine in South America
DECATUR, Ill., and HONG KONG, June 5, 2013 – Under the terms of a strategic alliance agreement signed May 24, Archer Daniels Midland Company (NYSE: ADM) will be the exclusive distributor of certain sweetener and lysine products manufactured by Global Bio-chem Technology Group Company Limited (0809.HK) and/or its subsidiary, Global Sweeteners Holdings Limited (03889.HK), to various markets in Asia and South America.
Beginning this month, ADM will be the exclusive sales channel for several of Global Sweeteners’ sweetener products. The market territory will include various Southeast Asian countries, the Far East, Australia and New Zealand. ADM maintains several regional sales offices in Asia, including those in China, India, Singapore, Japan and Australia.
In South America, ADM will also use its expansive marketing and sales network to distribute various Global Bio-chem lysine products to customers in Brazil and Argentina. Lysine is an amino acid commonly used by livestock producers to improve the nutritional value of animal rations; Global Bio-chem is among the world’s leading lysine producers, and ADM is a lysine market leader in South America.
In addition, the strategic alliance also formalizes the companies’ intention to collaborate in development of a catalyst for improving the production of glycerin from carbohydrates. A successful result could bring significant cost-savings and efficiencies to the production of renewable propylene glycol and ethylene glycol, which Global Bio-chem and ADM currently manufacture and market. These chemicals can be used in place of petroleum-derived varieties in personal-care products, pharmaceuticals and other applications.
“ADM is pleased to have the opportunity to provide many of the high-value products in Global Bio-chem’s portfolio to our extensive network of customers in Asia and South America,” said Ismael Roig, president, ADM Asia-Pacific. “This collaboration leverages the strengths of both companies to the benefit of customers, and we anticipate a positive response on both continents.”
Ms Xu Ziyi, Executive Director of Global Bio-chem, said: “We are delighted to join hands with global agricultural giant ADM to serve more markets in South America with our premium products. Moreover, the collaboration on the development of the catalyst shall enhance our R&D focus on production techniques and efficiency, and further improve development of our agricultural-based chemicals sector.”
Commenting on the strategic alliance with ADM, Mr Kong Zhanpeng, Chairman of Global Sweeteners, said: “We are glad to have one of the largest agricultural processors in the world as our strategic partner. With ADM’s extensive and well-established distribution network, Global Sweeteners can expedite its business development and increase brand awareness in the sweetener market in Asia.”
Archer Daniels Midland Company