ADM and Wilmar International strengthen Olenex partnership

US-based Archer Daniels Midland Company and Singapore-based Wilmar International Limited have entered into an agreement to strengthen their partnership in Olenex to become a complete-function joint-venture, holding its own assets.

According to the terms of the deal, ADM will move two facilities, a specialty oils and fats plant and a palm refining facility in Hamburg, Germany, to the new joint-venture (JV).

On the other hand, Wilmar will move its tropical oils processing plants in Brake, Germany and Rotterdam, the Netherlands to the JV.

The Olenex partnership was set up in 2012 to market oils and fats in Europe.

Besides processing, the JV will integrate raw materials sourcing, trading, and sales and marketing functions.

Olenex will market refined oils and fats from ADM’s other facilities plants in the Czech Republic, Germany, the Netherlands, Poland and the UK.

ADM’s European oils business president Duane Holz said: “This new agreement will allow Olenex to operate more efficiently and competitively, with a stronger brand presence and position in the oils and fats market.

“By turning Olenex into a full-function joint-venture, we will not only meet customer demand for a single, integrated supplier for oils and fats products, but we will also support ADM’s strategic goal of strengthening our European oils business for food products.”

With the latest move, the companies intend to build upon the partnership by leveraging complementary capabilities in order to provide value to customers.

Wilmar European oil and fats operations general manager Remond van Dorland said: “Olenex is a recognised brand in the European oil and fats market.

“The joint-venture will be well-positioned to capitalise on synergies between ADM and Wilmar, and capture profitable growth opportunities while delivering best-in-class service to customers.”

The agreement is expected to close by mid-2016, following regulatory approvals.