Archer Daniels Midland to expand partnership with Asia-Based Wilmar
2012-03-02 11:01:32
Archer Daniels Midland Co. (ADM) said Tuesday it has reached an agreement with Singapore-based Wilmar International Ltd. (WLMIY, F34.SG) to expand the companies' existing partnership.
ADM, which owns a 16% stake in Wilmar, said the companies would extend their partnership to fertilizer, ocean freight and tropical oil refining in Europe. The two companies, which trade and process grains and oilseeds, have signed a memorandum of understanding, ADM executives said at an investor presentation Tuesday afternoon.
ADM's partnership with Wilmar has given it access to the market in China, where the two companies built a network of soybean-crushing plants. ADM, based in Decatur, Ill., said the companies' relationship started in the mid-1990s.
"We have an excellent relationship with Wilmar's leadership, and we see Wilmar as a key partner, especially in our strategy to serve growing Asian demand for agricultural products," ADM CEO Patricia Woertz said.
The companies will now collaborate globally on fertilizer purchasing and distribution, and they will work to improve ocean freight fleet management, with both companies contributing two ships to the effort. In tropical oils, the companies will work together to better use plant capacity in Europe, ADM said.