Wilmar upgrades Olenex partnership to full-function JV

It aims to gain more traction in Europe.

In an effort to deepen its oils and fats business in the European region, Asia’s leading agribusiness group has upgraded its agreement with Olenex into a full-function joint venture with its own assets.

According to a press release by Wilmar, the agreement entails Wilmar to transfer its tropical oils processing plants in Brake, Germany and Rotterdam, the Netherlands into the new JV.

“In addition to processing, the joint venture will also integrate raw materials sourcing, trading, and sales and marketing operations. The agreement also stipulates that refined oils and fats from ADM’s other plants in the Czech Republic, Germany, the Netherlands, Poland and the U.K. will be marketed by Olenex,” the statement said.

According to Remond van Dorland, general manager of Wilmar’s European oil & fats operations, the joint venture would be well-positioned to tap the synergies between ADM and Wilmar for more profitable growth opportunities.

“Strengthening Olenex into a full-function joint venture with integrated assets is a strategic step to build upon that partnership, leveraging complementary capabilities to create value for the customer,” the statement said.