August 21, 2007

ABB extends global presence through Ukrainian joint venture
 

Press release
 

Australian agribusiness ABB Grain has signed an agreement with agro-industrial group Soufflet to establish a joint venture company in Ukraine.

Soufflet is an international agribusiness, operating mainly in the barley and wheat sectors, and specialising in malting, primary processing and milling operations. The company has developed strong relationships and a competitive position in the Ukrainian grains market, in addition to operating a malt plant in Slavuta, Ukraine. 

The ABB-Soufflet alliance will accumulate grain, manage supply chain activities and market grain both domestically and up to the point of export within the Ukrainian grain market.

ABB Grain's managing director, Michael Iwaniw, said the agreement would combine Soufflet's experience in the Ukraine with ABB's expertise in logistics, infrastructure development and international grain marketing.

"The new company will be equally owned by ABB and Soufflet Negoce, and will have two operating subsidiaries, a grain marketing company and a storage and handling company. It will operate a mix of purchased silos and rented space, with grain transported to ports for 'free-on-board' sale to buyers, who will chiefly be ABB or Soufflet," Iwaniw added.

Iwaniw assured Australian growers the Ukrainian joint venture did not signal any diminution of ABB's commitment to them or the accumulation and international marketing of Australian grains. ABB said it remains committed to its Grain Australia partnership with Grain Pool of Western Australia state.

"The Grain Australia alliance will remain the pre-eminent marketer of Australian barley, and will be given priority in supplying its traditional markets," he said.

According to Iwaniw, ABB will relocate a senior employee to Ukraine for an operational management role. But the majority of positions will be filled from within the eastern European country.