Archer Daniels Midland Co. (ADM) announced July 2 that it has completed two joint ventures -- one in Egypt, and one in Russia.

ADM and Cargill successfully completed their transaction and formally launched SoyVen, their new joint venture to provide soybean meal and oil for customers in Egypt.

SoyVen owns and operates the National Vegetable Oil Co. soy crush facility in Borg Al-Arab, along with related commercial and functional activities, including a separate Switzerland-based entity supplying soybeans to the Egypt crush plant. The plant’s daily crush capacity has been doubled to 6,000 metric tons in order to meet increasing Egyptian demand for higher-protein soybean meal and for oil, thus reducing the need for imports.

The new company, which will function as an independent entity, is headed by chief executive officer Ahmet Ertürk, who previously held global management positions in Cargill’s malt and grains and oilseeds businesses.

“By bringing together the strengths and capabilities of both Cargill and ADM in Egypt, this joint venture is uniquely positioned to meet specific customer needs in the growing Egyptian market,” Ertürk said. “The demand for high-quality soybean meal and for oil from both the food manufacturing and animal feed sectors continues to rise, and I’m confident customers will turn to SoyVen as the premier provider in Egypt.”

ADM and Cargill each hold a 50% interest in the joint venture, with the management team reporting to a board of directors appointed by the two parent companies. The joint venture’s assets do not include Cargill’s grain business and port terminal in Dekheila or the ADM-Medsofts joint venture at the Port of Alexandria. Each company will continue its separate business activities in Egypt and the region.

SoyVen will have offices and operations in Cairo and Borg Al-Arab in Egypt, as well as offices in Rolle, Switzerland.

Russian venture

In addition, ADM and Russia-based Aston Foods and Food Ingredients have successfully received all required regulatory approvals and launched their 50/50 joint venture to provide sweeteners and starches to customers in Russia.

Aston is one of Russia’s largest agricultural and food ingredients businesses, with activities in farming, oilseeds crushing, edible oils and grain origination, in addition to its sweeteners and starches business unit. ADM has had operations in Russia since 1980. With the launch of the new joint venture, ADM and Aston will partner to own and operate Aston subsidiary AKP, which includes a corn wet mill in Ibred, as well as a sales office in Moscow. Situated approximately 180 miles south east of Moscow, the Ibred plant is strategically located to serve major customers in the Russian food and beverage industry.

“This investment is the latest in a series aimed at expanding ADM’s geographic footprint in regions of expected growth worldwide. We’re pleased to continue diversification with the expansion of our sweeteners and starches capabilities into Russia,” said Pierre Duprat, ADM president for Europe, Middle East and Africa. “This is an exciting opportunity to bring together our experience and strengths to grow the jointly owned corn business. With AKP, we are in an excellent position to serve our customers’ needs in Russia and meet anticipated growth in demand both in the local market and globally.”

Effective as of June 29, 2018, the joint venture will operate under the name AKP and will be managed as a stand-alone entity. Its board will be made up of equal representation from the two parent companies. ADM's and Aston’s other businesses in Russia will remain separate.