Cargill made its first investment in Russia
08 January 20142 min reading
Cargill purchased 25% share of the terminal at Novorossiysk port from DeloPorts Limited in order to increase its activities in Russia.
Cargill strengthens Russian footprint with stake in Black Sea port terminal. Cargill has acquired a minority shareholding in a deep sea port terminal in Novorossiysk on the Black Sea in south west Russia. The company has purchased a 25 per cent plus one share indirect interest from DeloPorts Limited in its subsidiary, OAO Kombinat Stroykomplekt (KSK).
“We are pleased to announce this partnership with DeloPorts Limited,” said Andreas Rickmers, head of Cargill’s grain and oilseeds operations in Europe. “This strategic investment is in line with our intention to grow our operations in Russia. It is our first investment in a Russian port on the Black Sea and will strengthen our offering to the market, providing a channel to connect our Russian grain operations to the rest of the world.”
Rickmers continued: “Securing this vital step in their supply chain will also benefit Russian farmers, providing them with reliable access to global markets for their crops. It forms part of our growing focus to offer our farmer customers a range of services, advice and financial tools.”
The KSK facility has the capacity to handle 3.5 million metric tons of grain per annum. Cargill will use a portion of the volume capacity and the remaining volume will be available in the market. Cargill will also continue to use various port facilities throughout the Black Sea region to serve its customers around the world.
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