Cargill is to form a joint venture with Canadian grain firm Parrish & Heimbecker for the operation of the US agribusiness giant’s facility in Ontario in Canada.
Both firms have an equal ownership in the venture that will run the site in Thunder-Bay. They both operate out of the terminal port but the transaction will involve Cargill selling its existing assets to the new joint venture and both parties will divert grain to the venture.
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“This is about creating a business arrangement that will help build a long-term sustainable business,” said Len Penner, president of Cargill. “Both of our terminals have been underutilised in past years. With P&H as our partner, we’ll make the business stronger by sharing costs and efficiencies.”
Cargill said P&H may, in the future, operate its terminal to handle commodities not handled by the joint venture. The deal is expected to close by 31 May.
