ADM Enters Agreement to Acquire Rights to Dow´s Industrial Ethanol Business

01-Nov-2002

Archer Daniels Midland Company (ADM) and The Dow Chemical Company (Dow) today announced that effective January 1, 2005, ADM will acquire the interest of Union Carbide Corporation (UCC) in World Ethanol, a joint venture between ADM and UCC. UCC is a wholly-owned subsidiary of Dow. The agreement calls for ADM and UCC to continue marketing industrial ethanol through World Ethanol during a two-year transition period. During this period, the joint venture will work to transition existing UCC customers to fermentation ethanol produced at state-of-the art ADM facilities in Peoria, Illinois and Clinton, Iowa. At the end of the two-year transition period, Dow plans to exit the industrial ethanol business.

"We?re confident that this agreement will afford a seamless conversion for Dow?s customers. Dow?s decision to exit the industrial ethanol business was made after a lengthy and thorough internal assessment. Strategically, Dow?s goal is to focus our efforts and resources on those businesses where we have the greatest integration," said Pat Gottschalk, Global Business Director for Dow?s Solvents and Intermediates.

ADM is North America?s largest ethanol producer. In addition to the industrial ethanol markets, ADM services the global fuel, food and beverage alcohol markets with seven production facilities located in the United States.

ADM is also a world leader in agricultural processing. ADM is one of the world's largest processors of soybeans, corn, wheat and cocoa. ADM is also a leader in soy meal and oil, high fructose corn syrup (HFCS) and flour. In addition, ADM is building a position in such value-added products as specialty food ingredients, bioproducts and nutraceuticals (such as Vitamin E and sterols). Headquartered in Decatur, Illinois, ADM has over 24,000 employees, more than 260 processing plants and net sales for the fiscal year ended June 30, 2002 of $23.5 billion.

https://www.chemeurope.com/en/news/15528/adm-enters-agreement-to-acquire-rights-to-dows-industrial-ethanol-business.html