ADM-Wilmar International European Partnership to Become Full Standing JV
Archer Daniels Midland (ADM) and Wilmar International Ltd. have announced that they have agreed that their European partnership, Olenex, created for the marketing of fats and oils across the continent, will be transformed into a full standing joint venture with its own assets.
Under the terms of the agreement, ADM will contribute two sites to the new entity – a specialty fats and oils facility and a palm oil refining plant in Hamburg, Germany, and Wilmar will contribute its tropical oils processing plants located in Brake, Germany and Rotterdam, the Netherlands.
The joint venture will expand beyond processing to include raw material sourcing, trading, and marketing and sales operations, and will also assume the responsibility for marketing the refined oils and fats from ADM’s plants in the Czech Republic, Germany, the Netherlands, Poland, and the UK.
“This new agreement will allow Olenex to operate more efficiently and competitively, with a stronger brand presence and position in the oils and fats market,” said Duane Holz, president of ADM’s European Oils business in a recent press release.
“By turning Olenex into a full-function joint venture, we will not only meet customer demand for a single, integrated supplier for oils and fats products, but we will also support ADM's strategic goal of strengthening our European oils business for food products.”
Olenex was originally launched in 2012 as a partnership between the two global giants for marketing purposes across Europe. Transferring the partnership into a fully-functioning joint venture including integrated assets will enable the companies to leverage the capabilities and synergies that each brings to the venture, while also capturing growth opportunities and creating value for customers.
The formation of the joint venture is subject to gaining regulatory approvals, and is scheduled to close in mid-2016.