July 02nd 2018
ADM and Aston Foods Announce Completion of Sweeteners and Starches Joint Venture in Russia.
New jointly-owned business will serve growing Russian food and beverage industry.
Archer Daniels Midland Company and Russia-based Aston Foods and Food Ingredients have successfully received all required regulatory approvals and launched their 50-50 joint venture to provide sweeteners and starches to customers in Russia.
Aston is one of Russia’s largest agricultural and food ingredients businesses, with activities in farming, oilseeds crushing, edible oils and grain origination, in addition to its sweeteners and starches business unit. ADM has had operations in Russia since 1980. With the launch of the new joint venture, ADM and Aston will partner to own and operate Aston subsidiary AKP, which includes a corn wet mill in Ibred, as well as a sales office in Moscow. Situated approximately 180 miles south east of Moscow, the Ibred plant is strategically located to serve major customers in the Russian food and beverage industry.
“This investment is the latest in a series aimed at expanding ADM’s geographic footprint in regions of expected growth worldwide. We’re pleased to continue diversification with the expansion of our sweeteners and starches capabilities into Russia,” said Pierre Duprat, president, Europe, Middle East and Africa. “This is an exciting opportunity to bring together our experience and strengths to grow the jointly-owned corn business. With AKP, we are in an excellent position to serve our customers’ needs in Russia and meet anticipated growth in demand, both in the local market and globally.”
Effective from June 29, 2018, the joint venture will operate under the name AKP and will be managed as a standalone entity. Its board will be made up of equal representation from the two parent companies. ADM and Aston’s other businesses in Russia will remain separate.