Cargill ramps up edible oil supplies in East Europe
in Eastern Europe, announcing plans to buy a sunflower seed
crushing facility in Ukraine from Ukrainian consumer food company
Chumak, writes Lindsey Partos.
Located in southern Ukraine, the plant can churn over 1,200 MT a day.
The private US firm claims the bolt on acquisition would "complement Cargill's existing oilseed crushing facility in Donetsk in eastern Ukraine."
If cleared by the regulatory authorities, this latest deal would support the firm's growing crushing capacity in the Eastern Europe.
"Together with our existing facility in Donetsk and our network of grain elevators, this acquisition would provide a platform for future growth," comments Andreas Rickmers, Cargill's country manager in Ukraine.
The sunflower seed crushing facility in Kahovka is part of Chumak's industrial complex that also includes an oil refinery and bottling plant. Neither of these is included in the proposed acquisition.
Last month Cargill upped its stake in the Romanian edible oils market, as the competition authorities cleared the way for the US firm to buy Olpo Podari, the largest Romanian sunflower oil maker.
Cargill already controls around 10 per cent of Romania's silo capacity after the acquisition of Comcereal earlier this year, that gave it a comprehensive network of grain storage facilities in the Romanian grain belt.
The acquisition of Olpo Podari allows it to move into the local market for oilseed crushing and refining, as well as the bottled oils business.
Global production of sunflower hit an average of about 24 million tons last year.
