Australia
August 20, 2007
Premier, integrated Australian
agribusiness
ABB Grain, has signed an
historic agreement with agro-industrial group
Soufflet, to
establish a joint venture company in the Ukraine.
The ABB-Soufflet alliance will accumulate grain, manage supply
chain activities and market grain both domestically and up to
the point of export within the Ukrainian grain market.
ABB Grain’s managing director, Michael Iwaniw, said the
agreement would combine Soufflet’s experience in the Ukraine
with ABB’s considerable expertise in logistics, infrastructure
development and international grain marketing.
“The new company will be equally owned by ABB and Soufflet
Negoce and will have two operating subsidiaries, a grain
marketing company and a storage and handling (infrastructure)
company,” Mr Iwaniw said. “It will operate a mix of purchased
silos and rented space; grain will be transported to ports for
‘free-on-board’ sale to buyers, who chiefly will be ABB or
Soufflet.”
Mr Iwaniw said the new partnership with a strong European-based
grain marketer, operating a grains marketing business out of the
world’s second largest barley exporting nation, would
significantly strengthen ABB’s position in the global barley
market.
He assured Australian growers the Ukrainian joint venture did
not signal any diminution of ABB’s commitment to them, nor the
accumulation and international marketing of Australian grains.
ABB remained firmly committed to its Grain Australia partnership
with Grain Pool of WA.
‘The Grain Australia alliance will remain the pre-eminent
marketer of Australian barley, and will be given priority in
supplying its traditional markets.” he said. “Since deregulation
of SA barley it’s important to maintain our position in the
market, and manage the supply risk.”
“Through establishing significant presence and influence in the
Ukraine, and with ABB’s profile in Australia, there is an
unprecedented opportunity for us to become a major participant,
and exercise significant influence, in the global grains market.
The Joint Venture will assist our Australian business as it
secures our continuity of grain supply and extends our shipping
season to virtually all year, enabling us to meet customers’
needs. This will enhance ABB Grain’s ability to compete with
International traders now operating in Australia.
Mr Iwaniw said ABB would relocate a senior employee to the
Ukraine for an operational management role. But the majority of
positions would be filled from within the Ukraine.
"This represents a truly exciting opportunity for ABB to work
with Soufflet in capitalising on the considerable potential the
developing Ukraine economy and its agricultural sector present
in the years ahead.”
Other news from
Groupe
Soufflet |
|
Soufflet is an international
agribusiness, operating mainly
in the barley and wheat sectors,
specialising in malting, primary
processing and milling
operations. They have developed
strong relationships and a
competitive position in the
Ukraine grains market, in
addition to operating a malt
plant in Slavuta, Ukraine.
Beyond being recognised as the
largest maltster in the world,
the Soufflet group of companies
provides a range of services to
industrial customers across many
countries. |
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