Archer Daniels Midland Company (ADM) through its affiliate Alfred Toepfler International (ACTI) announced a strategic expansion of its grain origination, storage and transportation and export operations along the Danube River in Romania. The project includes 12 grain elevators along the Danube, one inland-storage elevator in Western Romania and a joint-venture export elevator in the Black Sea port of Constanta.
The network includes three river elevators at Giurgiu, and one river elevator each at Braila, Constanta, Corabia, Oltenita, Orsova and Zimnicea. ACTI is also constructing new elevators at Calarasi, Giurgiu and Moldova Noua and has acquired a barge fleet to connect the network of river elevators to the joint-venture export elevator recently finished in Constanta. In addition, ACTI has plans to construct elevators at Bordusani, Corabia and Galati.
“We see great opportunities to increase our origination and transportation capabilities along the Danube River in Romania, which has become a net exporter of grain and oilseeds over the past several years,” said Gary L. Towne, chairman of the management board of ACTI. “The Danube River export project creates an end-to-end network, giving us the ability to originate crops directly from farmers, transport and store them, and ultimately export them to markets around the world.”
“This project is strategically important as we expand our origination network in Eastern Europe,” said Towne. “The storage facilities and export elevator are well positioned to give us additional capacity to move crops along the Danube River and to the Black Sea, while the addition of Toepfer-owned barges provides us with greater control of our supply chain and helps us achieve favorable transportation margins in what can be a volatile market,” said Towne.
Archer Daniels Midland Company, headquartered in Decatur, Illinois reported net sales of USD 81 billion for the fiscal year ended in June 30, 2011. The company turns crops into renewable products at more than 265 processing plants.
Toepfer International headquartered in Hamburg, Germany, trades 42 million tons of commodities annually. Archer Daniels Midland Company owns 80 percent of the company, while the remaining 20 percent is owned by French farming cooperative Union InVivo.