Cargill acquired a minority stake (25% plus one share) in OAO Kombinat Stroykomplekt (KSK) from DeloPorts Limited, as stated by Cargill's press service
The parties keep the price paid for the stake private.
The KSK facility has the capacity to handle 3.5 million metric tons of grain per annum. Cargill will use a portion of the volume capacity and the remaining volume will be available in the market. The port is expected to contribute to the development of Cargill's global network of grain and port facilities.
It is Cargill's first investment in a Russian port on the Black Sea, said Andreas Rickmers, head of the company's grain and oilseeds operations in Europe, adding that this solution would strengthen the company's offering to the market, providing a channel to connect grain operations in Russia to the rest of the world.”
"Securing this vital step in their supply chain will also benefit Russian farmers, providing them with reliable access to global markets for their crops. It forms part of our growing focus to offer our farmer customers a range of services, advice and financial tools," Rickmers emphasized.
"This is a win-win investment for the parties involved," said Natalia Orlova, Cargill's country representative and head of its food business in Russia. "It is an important element of our growing footprint in Russia, where we have been operating since 1991. We have invested more than $900 million across our portfolio of businesses in the country, making Cargill a leading investor in the agricultural sector, and offering more development opportunities for all our partners."
Earlier, Cargill announced the launch of an oil extraction plant construction project in Volgograd region, one of Russia's southern federal subjects) in September 2013.
OAO Kombinat Stroykomplekt (KSK, tax number: 2315006923) operates a deep-water terminal transshipping cargoes at the port of Novorossiysk on the Black Sea.
Cargill provides food, agriculture, financial and industrial products and services to the world. The company tapped into the Russian market in 1991 opening its first representative office in Moscow. Step by step, the company expanded its capacities in other regions of Russia. Cargill is a leading foreign investor the development of Russia's agriculture and food processing sectors.