Bunge, Wilmar to Launch JV in Vietnam
White Plains, New York-based Bunge and Singapore-based Wilmar International have joined forced to leverage their respective footprints in Asia through the formation of a joint venture in Vietnam –one of the fastest growing edible oil markets in Asia, reports the St. Louis Business Journal.
Under the terms of the deal, Bunge will sell 45% of its equity in its Vietnam crushing operation to Wilmar, while Quang Dung, a leading soybean meal distributor in Vietnam will retain its 10% stake – resulting in a three-party strategic collaboration involving three leaders along the entire oilseed supply chain in Vietnam.
The partnership will be able to create integrated operations that will capitalize upon Bunge’s upstream crushing capacity, Willmar’s downstream oil refining and consumer products business, with Quang Dung’s feed milling and marketing abilities through its feed milling subsidiary, Green Feed.
“The collaboration will create increased operating, marketing and logistics synergies across the Vietnam oils and soybean meal value chains, and help us remain a low-cost operator with the highest efficiency possible,” said Soren Schroder, CEO of Bunge Ltd. in a joint statement issued by Bunge and Wilmar.
Kuok Khoon Hong, chairman and CEO of Wilmar International noted that Bunge is “a natural partner” for Wilmar.
“In Vietnam, it [Bunge] is the largest producer of soybean oil, and Wilmar is a major buyer of soybean oil,” he said in a recent press release. “The soybean meal distribution capabilities of the joint venture also complement Wilmar’s animal feed ingredients business in Vietnam, including rice bran, wheat bran, palm kernel expeller, copra expeller, canola meal, and feed oils.”
Wilmar has been pursuing growth through a string of strategic joint ventures according to World Grain. In May of this year Wilmar announced a partnership with India-based manufacturer and marketer of soy foods, oils, and other consumer goods, Ruchi Soya, to create one of the largest consumer goods companies in India.
In January of this year Wilmar subsidiary, Yihai Kerry Investments Co. partnered with Singapore Food Industries Pte Ltd. to supply food to the Chinese market, and in December 2015, Wilmar announced a partnership with Archer Daniels Midland (ADM) to form Olenex, a venture to market edible oils and fats across Europe.