May 6, 2015     

 

ADM to acquire full ownership of Black Sea export terminals

 

 

Archer Daniels Midland Company (ADM) has announced that it has reached an agreement to acquire complete ownership of North Star Shipping and Minmetal.

 

The move will enhance the company's European origination and transportation network through the addition of export facilities at the Romanian Port of Constanta on the Black Sea.

 

North Star and Minmetal operate grain elevators and bulk commodity storage and warehousing as well as port services, stevedoring operations and a shipping agency at the mouth of the Danube River.

 

ADM was previously a partner in both North Star and Minmetal.

 

Among the assets included in the acquisition are 10 vessel berths, including seven deep sea berths; port terminals with annual throughput capacity of up to six million tonnes; on-site grain storage capacity of 330,000 tonnes; two floating cranes for direct barge-oceangoing vessel transfer; mobile shore cranes and equipment; a vacuum discharge and ship loader; and an iron ore and coal terminal located on a 21 hectares site.

 

"This acquisition helps us to meet our goal of strategic expansion though diversification and expansion of our trade and origination territory," said Joe Taets, the president of ADM Europe Middle East and Africa.

 

"We've talked about the potential to double the volume of our grain business. Here, we're taking a great step in that direction with this strategic expansion of our European network."

 

Taets added that full ownership of the Black Sea facilities enables ADM to build on investments made in its Danube River network since 2011, which "enhances our origination, logistics and export capabilities in Eastern Europe, and allows us to reach more customers around the globe".

 

The Port of Constanta is situated at the mouth of the Danube River, and is one of the most strategically important ports in the region. The river outlet into the Black Sea renders the port as a primary ingress and egress point for bulk commodities being traded to and fro of Romania, Bulgaria, Serbia and Hungary.

 

In 2011, ADM announced a substantial expansion of its grain origination, storage, transportation and export operations along the Danube River.

 

Today, the network includes eight elevators on the Danube (with two more under construction) as well as two inland origination facilities; shallow water port facilities in Braila; and 50 barges and six tug boats.

 

The Constanta Port assets add to those origination, logistics and processing capabilities in Romania and Eastern Europe.

 

ADM, through its minority stake in North Star and Minmetal (a separate joint venture owned by ADM and North Star), previously owned approximately 45% of the Constanta assets.