Global crop commodity shipper and processor Archer Daniels Midland (ADM) has purchased a 50% stake in the Cairo-based Medsofts Group. The Tawfik family-owned grain trading business, based in Egypt, handles more than 1.5 million tonnes of grains, oilseeds and soft commodity imports each year for markets across the Middle East and North Africa.
As a 50-50 joint venture, the restructured business will own and manage the international operations; local grain distribution in Egypt and an inland logistics network linking ports to customers throughout Egypt. It will also hold a 50% interest in Nile Stevedoring & Storage Co (NSSC) which runs one of Egypt’s largest grain port facilities at the Port of Alexandria handling more than two million tonne each year. The partners are “conducting advanced due diligence” over a potential oilseed crushing plant on land adjacent to the terminal.
“This is an excellent addition that helps meet several key goals for strategic expansion in our Agricultural Services business: it further diversifies and expands our merchandising footprint, it helps us grow our logistics services and is another important enhancement of our destination marketing capabilities, which are getting us closer to our customers as we deliver products directly to them,” says Joe Taets, president of ADM’s Agricultural Services business unit and president of the company’s Europe, Middle East and Africa operations.
“We are continuing to invest in our global supply chain as we execute our plan for profitable growth,” Mr Taets continues. “This year alone, in order to continue diversifying our footprint and enhancing our ability to connect supply and demand around the globe, ADM has opened new distribution and merchandising offices in Central America, Asia and Africa; acquired a port and shipping agency in Brazil; announced major expansions at port facilities in Argentina and Brazil; launched ARTCO Stevedoring; and acquired full ownership of strategically-located terminals on the Black Sea. These investments are expanding our reach and capabilities, and delivering value to our customers and our shareholders alike.”