Bunge and TRT-ETGO Form Joint Venture in Canada
ST. LOUIS, Dec. 12, 2011 /PRNewswire/ -- Bunge North America, the North American operating arm of Bunge Limited (NYSE: BG), announced that it has created a joint venture company with Twin Rivers Technologies Enterprises de Transformation de Graines Oleagineuses du Quebec Inc. (TRT-ETGO), a subsidiary of Felda Global Ventures Holdings Sdn Bhd of Malaysia. The joint venture, Bunge ETGO L.P., will combine the commercial activities related to the crushing and refining operations of Bunge's Hamilton, Ontario plant and TRT-ETGO's plant located in Becancour, Quebec.
"This joint venture creates an organization that can more effectively serve the growing demand for canola and soybean meal and oil in the domestic and export markets," said Rick Watson, Bunge's country manager in Canada. "Managing the commercial aspects of both facilities as a single company provides a number of efficiencies, reducing the overall cost of running both facilities."
The combined crush capacity of Bunge ETGO is two million tons per year. Both plants are able to crush either canola seed or soybeans. While Bunge and TRT-ETGO will continue to own and operate their respective facilities, the joint venture will be responsible for all commercial aspects of the business including oilseed procurement, product sales and risk management.
"We are excited to combine our commercial activities with Bunge. Bunge ETGO will honor all open contracts and the new commercial team looks forward to providing new marketing opportunities for customers," said Wira Adam, acting CEO of TRT-ETGO. "While the new commercial team includes employees from both companies, TRT-ETGO will be closing its trading office in Montreal and relocating a few employees to Becancour or the joint venture's office in Oakville, Ontario."
Financial terms of the transaction are not being disclosed.
About Bunge North America
Bunge North America (www.bungenorthamerica.com), the North American operating arm of Bunge Limited (NYSE: BG), is a vertically integrated food and feed ingredient company, supplying raw and processed agricultural commodities and specialized food ingredients to a wide range of customers in the livestock, poultry, food processor, foodservice and bakery industries. With headquarters in St. Louis, Missouri, Bunge North America and its subsidiaries operate grain elevators, oilseed processing plants, edible oil refineries and packaging facilities, and corn dry mills in the U.S., Canada and Mexico.
About Bunge Limited
Bunge Limited (www.bunge.com, NYSE: BG) is a leading global agribusiness and food company with approximately 32,000 employees in more than 30 countries. Bunge buys, sells, stores and transports oilseeds and grains to serve customers worldwide; processes oilseeds to make protein meal for animal feed and edible oil products for commercial customers and consumers; produces sugar and ethanol from sugarcane; mills wheat and corn to make ingredients used by food companies; and sells fertilizer in North and South America. Founded in 1818, the company is headquartered in White Plains, New York.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains both historical and forward-looking statements. All statements, other than statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are not based on historical facts, but rather reflect our current expectations and projections about our future results, performance, prospects and opportunities. We have tried to identify these forward-looking statements by using words including "may," "will," "should," "could," "expect," "anticipate," "believe," "plan," "intend," "estimate," "continue" and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The following important factors, among others, could affect our business and financial performance: industry conditions, including fluctuations in supply, demand and prices for agricultural commodities and other raw materials and products used in our business; fluctuations in energy and freight costs and competitive developments in our industries; the effects of weather conditions and the outbreak of crop and animal disease on our business; global and regional agricultural, economic, financial and commodities market, political, social and health conditions; the outcome of pending regulatory and legal proceedings; our ability to complete, integrate and benefit from acquisitions, dispositions, joint ventures and strategic alliances; our ability to achieve the efficiencies, savings and other benefits anticipated from our cost reduction, margin improvement and other business optimization initiatives; changes in government policies, laws and regulations affecting our business, including agricultural and trade policies, tax regulations and biofuels legislation; and other factors affecting our business generally. The forward-looking statements included in this release are made only as of the date of this release, and except as otherwise required by federal securities law, we do not have any obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances.
SOURCE Bunge North America