Archer Daniels Midland Company (NYSE: ADM) announced 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.
About Elstar Oils
The main activity of Elstar Oils S.A. is rapeseed oil and vegetable fats production. The products are directed at the domestic, business-to-business market and industry customers throughout the country. The Company’s subsidiary Biopaliwa SA, located in Malbork, produces biodiesel components since 2008. In 2008, the Elstar Group completed the last stage of four-year long investment process, which resulted in an increase of the rapeseed crush capacity from 200 to 400 thousand tons annually.
Every day, the 30,000 people of Archer Daniels Midland Company (NYSE: ADM) turn crops into renewable products that meet the demands of a growing world. At more than 265 processing plants, we convert corn, oilseeds, wheat and cocoa into products for food, animal feed, chemical and energy uses. We operate the world’s premier crop origination and transportation network, connecting crops and markets in more than 75 countries. Our global headquarters is in Decatur, Illinois, and our net sales for the fiscal year ended June 30, 2011, were $81 billion. For more information about our company and our products, visit www.adm.com.