Joint Venture Formed In Vietnam To Develop Supply Chain For Soybean Products

Wednesday, July 20th, 2016 | 838 Views

One of Vietnam’s largest producer of soybean oil Bunge Limited and Wilmar, the world’s largest palm oil processor and one of the biggest soybean buyers, are forming a joint venture in Vietnam to leverage both companies’ footprints in Asia.

Bunge will sell 45 percent of its equity in its Vietnam crush operations to Wilmar, creating a three-party joint venture with Bunge and Wilmar as equal 45 percent shareholders, and Quang Dung, who will retain its existing 10 percent stake in the operations. Quang Dung is a soybean meal distributor in Vietnam, and a majority owner of Green Feed, a growing Vietnamese feed milling business.

The transaction will integrate operations for the different parties, creating both a source and sales outlet for oil in Vietnam. Bunge crushes soybeans into soybean oil and soybean meal and ships farm products around the world. Wilmar refines oil for its consumer products business and can use meal for its animal feed ingredients business in Vietnam. Quang Dong’s Green Feed focuses on feed milling and marketing activities.

“Bunge is excited to partner with Wilmar, the largest downstream edible oils player in Vietnam,” said Soren Schroder, CEO, Bunge. “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.”

“Bunge is a natural partner for us. In Vietnam, it is the largest producer of soybean oil and Wilmar is a major buyer of soybean oil,” said Kuok Khoon Hong, chairman and CEO of Wilmar. “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.”