Marubeni and ADM Bolster Export Joint Venture in U.S. Pacific Northwest
CHICAGO--(BUSINESS WIRE)--Archer Daniels Midland Company (NYSE: ADM) and Marubeni Corporation (TSE: 8002) announced today that they have expanded Kalama Export Company LLC (KEC), their joint venture in the U.S. Pacific Northwest, as a result of Marubeni’s contribution of its grain export elevator operations at Terminal 5 in The Port of Portland, Oregon, to Columbia Export Terminal, a subsidiary of KEC. In connection with the transaction, the parties also intend to rename KEC as Pacificor, LLC.
KEC, which was formed in 1998 by Marubeni’s subsidiary, Gavilon Holdings, LLC; ADM; and Agrex, Inc., is engaged in the business of exporting grains and oilseeds via its grain elevator operation located in The Port of Kalama, Washington. The Kalama and Portland grain elevator facilities will continue to operate separately and maintain separate control of labor relations, but their common ownership is expected to improve efficiency and achieve more effective operation of the businesses.
“This action represents another important step in our ongoing efforts to build ADM’s Agricultural Services value chain from origination to destination,” said Joe Taets, ADM senior vice president and president, Agricultural Services. “With the addition of these export operations to Kalama Export Company, we are further expanding our network in a capital-effective way.”
“We believe that common ownership of the facilities will accelerate the parties’ efforts to improve operational efficiency and effectiveness, which ultimately will enable us to provide better service to our customers, worldwide,” added Satoshi Wakabayashi, Marubeni’s Managing Executive Officer, Chief Operating Officer, Food Material Division.
Established in 1949, Marubeni is responsible for the handling of products and provision of services in a broad range of sectors. These areas encompass importing and exporting, as well as transactions in the Japanese market, related to food, textiles, materials, pulp and paper, chemicals, energy, metals and mineral resources, transportation machinery, and include offshore trading. The company's activities also extend to power projects and infrastructure, plants and industrial machinery, real estate development and construction, and finance, logistics and information industry. Additionally, Marubeni conducts business investment, development and management on a global level. For more information, visit www.marubeni.com.
For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve vital needs. Today, 31,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa into products for food, animal feed, industrial and energy uses. With more than 270 processing plants, 470 crop procurement facilities, and the world’s premier crop transportation network, ADM helps connect the harvest to the home in more than 140 countries. For more information about ADM and its products, visit www.adm.com.
Archer Daniels Midland Company
Jackie Anderson, 217-424-5413