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Monday 26 February 2018

ADM, Cargill to form soybean joint venture in Egypt




Archer Daniels Midland Company (ADM) and Cargill have reached an agreement to launch a joint venture (JV) to provide soybean meal and oil for customers in Egypt.
The JV would own and operate the National Vegetable Oil Company soy crush facility in Borg Al-Arab along with related commercial and functional activities, including a separate Switzerland-based merchandising operation that would supply soybeans to the crushing plant.
The companies are expecting to formally launch the joint venture in mid-2018.
Cargill is currently expanding the plant from 3,000 metric tons to 6,000 metric tons of daily crush capacity. The plant will be able to produce higher-protein soybean meal while reducing the need for soybean meal imports into Egypt.
The JV will be managed as a standalone entity consisting of equal ownership by ADM and Cargill, with a management team reporting to a board of directors appointed by the two parent companies. The joint venture’s assets will not include Cargill’s grain business and port terminal in Dekheila, or the ADM-Medsofts joint venture at the Port of Alexandria. Each company will continue its separate business activities in the country and region.

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