Aug 14 2011
Archer Daniels Midland Company (NYSE: ADM) announced today another important step in the expansion of its oilseed processing, food manufacturing and biodiesel capabilities with the signing of an agreement to purchase a majority share of Elstar Oils S.A. A Warsaw-listed company, Elstar is a leading Polish manufacturer of quality refined vegetable oils and fats for the food industry, and biodiesel for the energy market. The purchase is subject to approval by relevant antitrust authorities.
Elstar, located in northern Poland, operates a rapeseed crushing, refining, solid-fat packaging and oil bottling facility in Czernin and a fully-automated biodiesel facility in Malbork.
“Poland is an important origination and consumer market for ADM. Elstar’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,” said Brent Fenton, president, ADM Europe. “The biodiesel plant will enable ADM to develop the biodiesel market in Poland and fits well within the company’s integrated business model.”
ADM’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 joint venture with Princes to expand the distribution of bottled vegetable oils in Poland.