Archer Daniels Midland (ADM) has bought a 50% stake in the sweeteners and starches business of Russian ingredients manufacturer Aston Foods and Food Ingredients.
ADM says the investment strengthens its position in the Russian market, and builds upon its recent acquisitions in Europe, the Middle East and Africa, such as the purchase of French sweetener and starch manufacturer Chamtor last year.
ADM will own 50% of Aston’s corn wet mills in Ibred and Novlyanka as a result of the deal, and the company says the two facilities are strategically located in close proximity to major clients in the Russian food and beverage industry.
Pierre Duprat, president of ADM Europe, Middle East and Africa said: “ADM has substantially added to our global sweeteners and starches capabilities with acquisitions serving the European Union, Middle East and North Africa markets, and now we are expanding to serve the growing Russian food and beverage industry.
“Aston is a key player in this important market, and we look forward to joining them and bringing our experience and capabilities to help our new jointly-owned business grow.”
Chris Cuddy, president of ADM’s corn processing business added: “This investment is the latest in a series of important additions and enhancements we have made to grow our global corn business.
“Last year, we completed our acquisition of Chamtor, opening up access to key markets in Western Europe.
“In 2015 and 2016, we acquired corn facilities in Hungary, Bulgaria, Turkey and Morocco, then launched a significant expansion effort to enhance our capabilities in those businesses.
“And we’ve grown significantly in Asia, with our sweetener facility in Tianjin as well as several animal feed plants.
“Taken together with this expansion into Russia, these global additions represent a substantial transformation for our corn business as we continue our geographical growth and diversification.”
© FoodBev Media Ltd 2020
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