Agribuisiness giant Archer-Daniels-Midland (ADM) has agreed to dissolve its ethanol joint venture with Dow Chemical Co (formerly Union Carbide), at the end of this calendar year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The venture began in 1983 to exploit the possiblities of Dow’s “access to and knowledge of the industrial ethanol market with ADM’s fermentation ethanol production capabilities”. Commenting on the split, however, Dow’s solvents and intermediates business director, Pat Gottschalk, admitted: “The JV did not produce an adequate financial return nor create sufficient value for customers.”
Decatur, Ill.-based ADM said that it would begin selling its industrial ethanol products independently from 1 January 2003. Larry Cunningham, senior VP, corporate affairs, said: “The addition of industrial ethanol will complement our existing portfolio of fuel and beverage products.
“We are committed to a leadership position in the total ethanol industry and believe a direct presence in all three of these markets is critical in optimising our business objectives.
“The industrial ethanol will be produced at the ADM Peoria, Illinois and Clinton, Iowa corn processing facilities.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
