Archer Daniels Midland (ADM), one of the world's four biggest agribusiness firms, and Russia's Aston Foods and Food Ingredients have received on Monday the regulatory approvals to launch a 50-50 joint venture. The joint venture aims to provide sweeteners and starches to customers in Russia. ADM has had operations in Russia since 1980. With the launch of the new joint venture, ADM and Aston will partner to own and operate Aston subsidiary AKP, which includes a corn wet mill in Ibred, as well as a sales office in Moscow. Situated approximately 180 miles south east of Moscow, the Ibred plant is strategically located to serve major customers in the Russian food and beverage industry. Aston is one of Russia's largest agricultural and food ingredients businesses, with activities in farming, oilseeds crushing, edible oils and grain origination, in addition to its sweeteners and starches business unit. "This investment is the latest in a series aimed at expanding ADM's geographic footprint in regions of expected growth worldwide. We're pleased to continue diversification with the expansion of our sweeteners and starches capabilities into Russia," said Pierre Duprat, ADM president for Europe, Middle East, and Africa. "With AKP, we are in an excellent position to serve our customers' needs in Russia and meet anticipated growth in demand, both in the local market and globally." Effective from June 29, the joint venture will operate under the name AKP and will be managed as a standalone entity. Its board will be made up of equal representation from the two parent companies. ADM and Aston's other businesses in Russia will remain separate.
