ARGENTINA – Global ingredient solutions provider to the food and beverage industry Ingredion has partnered with Argentina’s Grupo Arcor to create a new food ingredients joint venture for the South America region.
Arcor is a leading food company in Argentina, the first global producer of hard candy, and the main confectionery exporter in Argentina, Chile, and Peru.
It has more than 40 industrial plants with a daily production volume that amounts to 3 million kilograms and brands that are reportedly sold in more than 100 countries worldwide.
In a statement, Ingredion said the new JV will leverage the two companies’ manufacturing expertise, complementary geographic footprints and commercial capabilities to broaden food and beverage ingredient offerings to customers in Argentina, Chile and Uruguay.
Arcor and Ingredion will hold a 51% and 49% stake, respectively in the joint venture which will reportedly have a combined turnover of more than US$300 million.
Arcor will transfer its ingredient operations to the joint venture, which includes one manufacturing facility in Lules and two manufacturing facilities in the Industrial Complex Arroyito.
Ingredion, on the other hand, will transfer its Argentina, Chile and Uruguay operations to the joint venture, which includes two manufacturing facilities in the districts of Chacabuco and Baradero.
The manufacturing facilities produce value-added ingredients, such as glucose syrups, maltose, fructose, starch and maltodextrins that are essential to the food, beverage and pharmaceutical industries.
The joint venture will be managed by a jointly appointed team of executives who will be responsible for integrating the combined operations of the previously independent entities.
They will oversee the manufacture, marketing, and sale of ingredients within Argentina, Chile and Uruguay as well as further optimizing the manufacturing network and support functions to create incremental shareholder value.
“We are pleased to announce our joint venture with Grupo Arcor, a leader and pioneer in the food industry,” said Jorge Elías, president of Ingredion’s South America region.
Arcor is to consolidate the business upon closure of the transaction in order to allow for the joint venture to operate on a stand-alone basis.
Reports from Ingedion indicate that the joint venture has been approved by each company’s board of directors and is subject to regulatory approvals and customary closing conditions.
“Our alliance with Ingredion is a major step in the process of growing and consolidating the Group’s ingredients business,” said Modesto Magadan, Agribusiness General Manager, from Arcor.
“In this way, Grupo Arcor strengthens its position as a company that invests and grows in the country on a continuous basis through three business divisions: Consumer Product Goods Agribusiness, and Packaging.”
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