ADM to Acquire Full Ownership of Black Sea Export Terminals
May 05 2015 - 10:21AM
Business Wire
- Expansion of Romanian port capacity
will further strengthen origination and transportation network in
Eastern Europe
Archer Daniels Midland Company (NYSE: ADM) announced today that
it has reached an agreement to acquire complete ownership of North
Star Shipping and Minmetal, enhancing the company’s European
origination and transportation network through the addition of
export facilities at the Romanian Port of Constanta on the Black
Sea. North Star and Minmetal operate grain elevators and bulk
commodity storage and warehousing as well as port services,
stevedoring operations and a shipping agency at the mouth of the
Danube River. ADM was previously a partner in both North Star and
Minmetal.
Among the assets included in the acquisition are:
- Ten vessel berths, including seven deep
sea berths
- Port terminals with annual throughput
capacity of up to 6 million metric tons
- On-site grain storage capacity of
330,000 metric tons
- Two floating cranes for direct
barge-oceangoing vessel transfer
- Mobile shore cranes and equipment
- A vacuum discharge and ship loader
- An iron ore and coal terminal located
on 21 hectares
“This acquisition helps us to meet our goal of strategic
expansion though diversification and expansion of our trade and
origination territory,” said Joe Taets, president of ADM Europe
Middle East and Africa, and of the company’s Agricultural Services
business unit. “We’ve talked about the potential to double the
volume of our grain business. Here, we’re taking a great step in
that direction with this strategic expansion of our European
network. By becoming full owners of these facilities on the Black
Sea, we’re building on the investments we have made in our Danube
River network since 2011, which enhances our origination, logistics
and export capabilities in Eastern Europe, and allows us to reach
more customers around the globe.”
The Port of Constanta sits on the Black Sea at the mouth of the
Danube River, and is one of the most strategically significant
ports in the region. The Danube River outlet into the Black Sea
makes the Port of Constanta the primary ingress and egress point
for bulk commodities being traded into and out of Romania,
Bulgaria, Serbia and Hungary.
In 2011, ADM announced a substantial expansion of its grain
origination, storage, transportation and export operations along
the Danube River. Today, the network includes eight elevators on
the Danube, with two more under construction; two inland
origination facilities; shallow water port facilities in Braila;
and 50 barges and six tug boats. The new Constanta Port assets add
to those origination, logistics and processing capabilities in
Romania and Eastern Europe.
ADM, through its minority stake in North Star and through
Minmetal—a separate 50-50 joint venture owned by ADM and North
Star—previously owned approximately 45 percent of the Constanta
assets.
Forward-Looking Statements
Some of the above statements constitute forward-looking
statements. ADM’s filings with the SEC provide detailed information
on such statements and risks, and should be consulted along with
this release. To the extent permitted under applicable law, ADM
assumes no obligation to update any forward-looking statements.
About ADM
For more than a century, the people of Archer Daniels Midland
Company (NYSE: ADM) have transformed crops into products that serve
the vital needs of a growing world. Today, we’re one of the world’s
largest agricultural processors and food ingredient providers, with
more than 33,000 employees serving customers in more than 140
countries. With a global value chain that includes more than 460
crop procurement locations, 300 ingredient manufacturing
facilities, 40 innovation centers and the world’s premier crop
transportation network, we connect the harvest to the home, making
products for food, animal feed, chemical and energy uses. Learn
more at www.adm.com.
Archer Daniels Midland CompanyMedia
RelationsJackie Anderson, 312-634-8484media@adm.com
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