Investment Promotion Agency of Rostov Region

News Room

1 March

“ASTON” WILL DEVELOP THE PRODUCTION OF STARCH AND SYRUPS IN RUSSIA IN PARTNERSHIP WITH THE WORLD LEADER

Rostov company “ASTON Foods and Food ingredients” (JSC ASTON) and American Archer Daniels Midland Company (ADM) have signed an agreement on creation of a joint venture company producing starch and syrups in Russia.
 
ASTON has started to develop the production of starch and syrups with an acquisition in 2011 of the “Rossiyskie krahmalo-produkty” group of companies, which is one of the leading starch producer in Russia, and earlier had two plants on corn processing in the Vladimir region: JSC “Ibredkrahmalopatoka” in the Ryazan region and JSC “KPZ Novlyanskiy”.
 
Within the global development of the food ingredients industry strategy ASTON has started the large-scale modernization of its enterprises. In 2014 the new high-tech manufacturing was started in JSC “Ibredkrahmalopatoka”.

In 7 years the enterprise has made the transition from the small manufacturing to the high-tech, equipped with advanced technology industrial giant, taking the lead among the largest companies in the Russian starch industry.

According to the terms of the Agreement, ADM will become a partner on a parity basis, acquiring 50% of stocks of ASTON’s starch division, which is localized in Ryazan and Vladimir regions.
 
For ASTON ADM is a partner with the great sectoral experience and cutting-edge knowledge in the food ingredients production sector.
 
“The joint venture company with the world leader is our strategic achievement” – Director General of the managing company ASTON Vadim Vikulov points out. We have closely cooperated with the ADM company for many years and we see strong synergies in the common project. Our plants produce a wide range of more than 20 kinds of molasses, syrups and starch, food, feed for different industrial sectors, including modified, native, oxidized, cationic starch as well as glucose-fructose syrup and corn oil for more than 350 companies-partners in a B2B sector. In cooperation with ADM ASTON is going to expand the range of products and to improve the quality to satisfy the growing demand of clients in Russia and the CIS.”
 
ASTON looks forward to completing the transaction up to the 2nd quarter, after getting approval by the Russian regulator.
 
“ADM has significantly increased its global presence as a starch and sweeteners producer, expanding its impact on the European, Middle Easterm, Northern African markets; and now we are joining the growing Russian production of foods and drinks, -  Pierre Duprat, the President of ADM in Europe, Middle East and Africa stated. – ASTON is a key player on this important market, and we are looking forward to the opportunity for our integration, involvement of our experience and capabilities to help the new joint business to grow”.
 
ASTON company profile

For more than 20 years ASTON has been one of the largest food ingredients companies in Russia. ASTON – is the second largest vegetable oils exporter, oil seed processor, starch producer, the third largest Russian grain exporter and bottled vegetable oil producer. ASTON has developed logistics infrastructure for procurement and transportation of agricultural raw materials, a network of enterprises processing sunflower seeds and corn on the west side of Russia and is a key player on the Russian starch and edible oils. The company’s staff exceeds 3700 people. ASTON sells the products throughout Russia and 35 countries all over the worlds including the CIS, Middle East, Europe, Asia, and Africa. The company’s headquarters are in Rostov-on-Don. ASTON JSC is a private company. (www.aston.ru)
 
ADM company profile

For more than 100 years ADM has been one of the world’s largest foods and agricultural products suppliers, the leading corn processor. ADM serves the clients in more than 170 countries all over the world, the company’s staff is about 31 000 employees. The company has 500 storage centres, 270 food ingredients production facilities, 44 innovation centres and the largest logistics network. ADM produces foods and food ingredients, feed for animals, production for industrial and energy purposes and has an extensive experience in this sphere (www.adm.com).