ADM invests in Cairo-based company

AGRICULTURAL processor and food ingredient provider, Archer Daniels Midland Company will purchase 50% stake in Medsofts Group, a privately based company in Cairo. The parties agreed that the joint venture will own and manage merchandising and supply chain operations, which includes an international merchandising operation that handles more than 1.5 million metric tons of grains, oilseeds and soft commodities annually destined for the Middle East and North Africa; a local grain distribution operation, serving customers in Egypt; and an inland logistics network that links port operations to customers throughout Egypt.

The JV will own a 50% share of Nile Stevedoring & Storage Co. (NSSC) in Port of Alexandria, Egypt. The facility has an annual discharge capacity of more than 2 million metric tons, and includes additional land for future expansion; the joint venture parties are conducting advanced due diligence on a potential oilseed crush facility on that land.

This investment widens ADM’s foothold in the EMEA supply chain, and will help the company grow its logistics services, and enhance marketing capabilities, according to Joe Taets, president of ADM’s Agricultural Services business unit, and president of the company’s EMEA operations.