ST. LOUIS, MISSOURI, U.S. — Bunge North America announced on Dec. 12 that it has created a joint venture company with Twin Rivers Technologies Enterprises de Transformation de Graines Oleagineuses du Quebec Inc. (TRT-ETGO), a subsidiary of Felda Global Ventures Holdings Sdn Bhd of Malaysia.
The joint venture, Bunge ETGO L.P., will combine the commercial activities related to the crushing and refining operations of Bunge's Hamilton, Ontario, Canada, plant and TRT-ETGO's plant located in Becancour, Quebec, Canada.
"This joint venture creates an organization that can more effectively serve the growing demand for canola and soybean meal and oil in the domestic and export markets," said Rick Watson, Bunge's country manager in Canada. "Managing the commercial aspects of both facilities as a single company provides a number of efficiencies, reducing the overall cost of running both facilities."
The combined crush capacity of Bunge ETGO is 2 million tonnes per year. Both plants are able to crush either canola seed or soybeans. While Bunge and TRT-ETGO will continue to own and operate their respective facilities, the joint venture will be responsible for all commercial aspects of the business including oilseed procurement, product sales and risk management.
"We are excited to combine our commercial activities with Bunge. Bunge ETGO will honor all open contracts and the new commercial team looks forward to providing new marketing opportunities for customers," said Wira Adam, acting chief executive officer of TRT-ETGO. "While the new commercial team includes employees from both companies, TRT-ETGO will be closing its trading office in Montreal and relocating a few employees to Becancour or the joint venture's office in Oakville, Ontario, Canada."
Financial terms of the transaction are not being disclosed.
Sign up for our free newsletters From daily reports on breaking news to weekly updates, World Grain has the grain, flour and feed industries covered. |
Subscribe |