ASTON will develop production of starches and syrups in Russia in partnership with the world leader
ASTON Foods and Food Ingredients JSC (ASTON JSC) and Archer Daniels Midland Company (NYSE: ADM) have reached a partnership agreement to produce starches and syrups in Russia.
ASTON started the development of the starch and syrup production in 2011 following the acquisition of the Russian Starch Products Group, one of the leading starch producers in Russia. This acquisition included two corn processing plants: Ibredkrakhmalpatoka OJSC in Ryazan region and Novlyanskiy Krakhmalo-Patochniy zavod OJSC in Vladimir region.
As part of its strategy to globally develop the food ingredients industry in Russia, ASTON started a large-scale modernization of the factories. In 2014, Ibredkrahmalpatoka OJSC has launched a new high-tech production. For 7 years now, the company has made a transformation from a small factory to a high-tech industrial plant. Thanks to the modern technologies, the company has become a leader in the Russian starch industry.
Under the terms of the agreement, ADM will become 50 percent owner of ASTON’s corn wet mills in Ibred and Novlyanka, which are strategically located close to major customers in the Russian food and beverage industry.
For more than 20 years, ASTON has been one of Russia’s largest agricultural and food ingredient company. ASTON is Russia’s second largest bulk edible oil exporter and seed crushing and starch producer, third largest bottled oil producer, and is a top three Russian grain handler. ASTON has a well-developed network of sunflower and corn origination and processing facilities in the western part of Russia, and is a key player in Russia’s significant edible oils and starch markets. ASTON has more than 3,700 employees. ASTON sells its products across Russia and into 35 countries including to CIS countries, Middle East, Europe, Asia and Africa. The head office is situated in Rostov on Don. JSC ASTON is privately owned company.
ADM is a strategic partner with advanced knowledge and experience in the production of food ingredients.
“This joint venture with a global leader is our strategic achievement”, says Vadim Vikulov, CEO of ASTON. “For many years we have been collaborating with ADM and we see great synergies in this project. Our corn processing plants produce a wide range of more than 20 different types of sweeteners, starches, food products and animal feeds for various industries, including modified, native, oxidized and cationic starches, as well as glucose-fructose syrups and corn oil for more than 350 partners-enterprises in B2B sector. In partnership with ADM, ASTON targets to increase the variety of products and improve their quality in order to meet the growing demand from customers in the Russian Federation and CIS countries”.
ASTON is targeting a close for the transaction, which is subject to regulatory approval, late in the second quarter of 2018.
“ADM has substantially added to its global sweeteners and starches capabilities with acquisitions serving the European Union, Middle East and North Africa markets, and now we are expanding into the growing Russian food and beverage industry, said Pierre Duprat, president, ADM Europe, Middle East and Africa. — ASTON is a key player in this important market, and we look forward to joining them and bringing our experience and capabilities to help our new jointly-owned business grow.”
For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve the vital needs of a growing world. Today, we’re one of the world’s largest agricultural processors and food ingredient providers, with approximately 31,000 employees serving customers in more than 170 countries. With a global value chain that includes approximately 500 crop procurement locations, 270 ingredient manufacturing facilities, 44 innovation centers and the world’s premier crop transportation network. We connect the harvest to the home, making products for food, animal feed, industrial and energy uses. Learn more at www.adm.com