ADM to Sell 50 Percent Stake in Northern Brazil Export Terminal
CHICAGO--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) announced today that it has reached an agreement to sell to Glencore plc (LSE: GLEN) a 50 percent stake in its export terminal in Barcarena, in the northern Brazilian state of Pará. The ADM-Glencore joint venture that will own and operate the facility following the transaction also plans to quadruple the terminal’s capacity from 1.5 million metric tons to 6 million metric tons.
“ADM is continuing to take actions to improve our returns on invested capital,” said ADM CEO Juan Luciano. “One of the ways we’re doing this is by taking an asset-light approach where it makes sense. This agreement will both quadruple the capacity and increase the utilization of this strategically located port facility, enhancing our ability to serve the expanding Brazilian ag sector. And by sharing the investment with a partner, we are able to do all of this in a cost- and capital-efficient way.”
In addition to its increased capacity, the upgraded terminal will be able to handle larger Panamax vessels, allowing the joint venture partners to connect global markets more efficiently.
“The Barcarena terminal will continue to be a vital component of our Brazilian logistics network,” said Valmor Schaffer, president, ADM South America. “Agricultural production is expanding rapidly in northern and western Brazil, and the Barcarena terminal is very well positioned to capitalize on that growth. By quadrupling that terminal’s capacity, we are also expanding our ability to serve growers here in Brazil, and meet customer needs here as well as in Europe, Asia and other key global markets.”
The transaction, which is contingent on regulatory approvals, is expected to close during the first half of this year.
About ADM in Brazil
ADM is one of the largest agribusiness companies in Brazil. With more than 4,300 employees, the company processes soy at four facilities, and markets the soy oil brands Concórdia and Corcovado. The company operates the largest biodiesel plant in Brazil, a cocoa processing plant, a sugar cane processing facility that produces ethanol, and more than 40 elevators across the country. ADM is building a soy protein production complex next to the company’s existing soybean processing facility in Campo Grande, Mato Grosso do Sul.
For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve the vital needs of a growing world. Today, we’re one of the world’s largest agricultural processors and food ingredient providers, with more than 33,000 employees serving customers in more than 140 countries. With a global value chain that includes more than 460 crop procurement locations, 300 ingredient manufacturing facilities, 40 innovation centers and the world’s premier crop transportation network, we connect the harvest to the home, making products for food, animal feed, chemical and energy uses. Learn more at www.adm.com.
Archer Daniels Midland Company
Jackie Anderson, 312-634-8484