Cargill and Archer Daniels Midland – two of the world’s largest grain companies – are partnering in a soybean processing operation in Egypt.
Under the joint venture announced Monday, ADM will get an equal ownership stake in Cargill’s soy crush plant at Borg Al-Arab, which is near Alexandria. Terms of the joint venture, which includes a Switzerland-based soybean supply operation, weren’t announced.
The Borg Al-Arab plant produces soybean meal and oil. Cargill is currently doubling the plant’s soy crushing capacity to 6,000 metric tons per day, a $100 million investment.
Minnetonka-based Cargill is one of the world’s largest privately-held agribusiness companies, and Chicago-based ADM is one of its prime competitors in global grain markets. The Egyptian soy pairing is the first significant joint venture between the two companies.
“This deal is part of our strategy to grow Cargill’s business across Egypt and the North Africa region and helps us better serve customers in the market,” Roger Janson, head of Cargill’s grain and oilseed business in Europe and the Middle East, said in a press statement.
ADM and Cargill hope to launch the joint venture, which is subject to regulatory review, in mid-2018. Each company will continue to independently operate its other businesses in Egypt and the region.