Archer Daniels Midland (ADM) has signed an agreement to acquire a small, wholly owned corn wet mill from sugar giant Tate & Lyle.
The mill, in Casablanca, Morocco, is used to produce bulk ingredient products for Tate & Lyle’s customers in the food and board packaging industries, and will join ADM’s global sweetener and starches portfolio.
Chris Cuddy, president of ADM’s corn processing business, said: “The Morocco plant, which serves both global and regional customers in the food, feed, paper and corrugated board industries, is a great addition to our global sweeteners and starches footprint. The facility is the leading sweetener and starch supplier in a country that should see substantial demand growth in the coming years. It is well-positioned to serve Moroccan customers as well as Mediterranean export markets. This also represents an opportunity to help introduce a wider range of ADM food and feed ingredients to the Moroccan market.”
According to Tate & Lyle, “the sale represents another step in focussing Tate & Lyle’s business in Europe, Middle East and Africa on speciality food ingredients”.
In November, it completed the acquisition of ADM’s stake in its Eaststarch corn wet milling joint venture in Europe. The acquisition of the Slovakian facility would further bolster its speciality food ingredients business, Tate & Lyle said at the time, while its departure from three bulk ingredients plants in Europe would “substantially reduce its European bulk ingredients footprint”.
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