World Grain - July 2011 - 17

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ADM hones ‘clear and compelling strategy’ for growth
PARIS, FRANCE — A clear and compelling strategy is helping drive shareholder value creation at Archer Daniels Midland Co. (ADM), said Ray Young, senior vice-president and chief ﬁnancial ofﬁcer. Young spoke June 14 at the Deutsche Bank Securities Inc. Global Consumer Conference in Paris, France. In terms of strategy, Young said ADM has been active across all aspects of its business, including origination and transportation, oilseeds, corn processing, cocoa and wheat. The company has built on its origination and transportation leadership positions in North and South America, while growing its origination footprint in Canada and Europe and expanding its destination businesses in the Middle East, Asia and Africa. “Over the last ﬁve years we have been expanding our global storage capacity on an average of three percent per year,” Young said. “In the last six months, we announced plans to construct a shuttle train loader elevator in North Dakota. We announced expansions of the barge loading terminal and elevators in Missouri and Illinois. These expansions totaled 1.7 million bushels of storage. We began construction of a port terminal at Nueva Palmira in Uruguay. We acquired a grain elevator on the Elbe river in Riesa, Germany, and we announced the expansion of our grain warehouse at the Port of Gdynia in Poland, making it the country’s largest grain storage facility.” Within oilseeds, ADM has centered its focus on enhancing the value of its existing footprint, increasing plant efﬁciencies and regional expansion, Young said. “In the last six months at our Lloydminster, Alberta canola processing plant, we are doubling storage capacity,” he said. “We announced the acquisition of a soybean crush plant and biodiesel facility in Deerﬁeld, Missouri, U.S.” Diversiﬁcation and ﬂexibility have been key in ADM’s strategy within corn processing. Young said over the past six months the company has begun construction of a sweetener product transfer terminal in Chattanooga, Tennessee, U.S., and begun production of propylene glycol at its Decatur, Illinois, U.S., plant. While ADM has invested $1.3 billion in seven big projects, including two new corn dry mills in Columbus, Nebraska, U.S., and Cedar Rapids, Iowa, U.S., the company also has approved 130 capital expenditure projects for growth-related initiatives at a total commitment of $863 million. Young said the projects are expected to increase ADM’s annual operating proﬁt by approximately $264 million by 2015.

ADM Alliance Nutrition opens feed premix plant in China
DECATUR, ILLINOIS, U.S. — ADM Alliance Nutrition, Inc., a wholly owned subsidiary of Archer Daniels Midland Company (ADM), has opened a new feed premix plant in Tianjin, China to serve the growing Chinese market for animal nutrition products, the company announced on June 13. With an annual production capacity of 30,000 tonnes, the facility provides feed premixes to animal producers in the provinces of Henan, Hebei, Shandong, Shaanix and Anhui, and the municipalities of Tianjin and Beijing. This is ADM Alliance Nutrition’s second premix plant in China. The company has operated a premix plant in Dalian, China, since 1995. ADM said the opening of the Tianjin premix plant is its latest step to grow its business in China. In 2010, ADM made a $100 million cornerstone investment in the Agricultural Bank of China (ABC), and in early 2011 ADM opened an ofﬁce in Beijing.
www.World-Grain.com / World Grain / July 2011

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World Grain - July 2011

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