ADM to Buy majority Share of Elstar Oils
With this acquisition ADM aims to expand its oilseed processing, food manufacturing and biodiesel capabilities.
Elstar operates a rapeseed crushing, refining, solid-fat packaging and oil bottling facility in Czernin and a fully-automated biodiesel facility in Malbork.
ADMâ€™s operations in Poland include an oilseeds crushing and refining facility in Szamotuly that refines and bottles retail vegetable oils, and country elevators in Slawa Wielkopolska and Chroscina.
ADM has a joint venture company, BTZ, consisting of an import and export terminal in the port of Gdynia and recently announced plans to jointly construct a new grain warehouse to expand capacity. The company also has a JV with Princes to expand the distribution of bottled vegetable oils in Poland.
Brent Fenton, president of ADM Europe, said: â€œPoland is an important origination and consumer market for ADM. Elstarâ€™s location in the heart of a rapeseed growing region, with easy access to the ports of Gdansk and Gdynia, complements our existing presence in the region and will enable ADM to further strengthen its position in Eastern Europe. The biodiesel plant will enable ADM to develop the biodiesel market in Poland and fits well within the companyâ€™s integrated business model.â€
Will the acquisition benefit ADM?
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