Venture to meet growing demand for alternatives to petroleum-derived superabsorbents.
Archer Daniels Midland Company , CIC Holdings PLC and Chemanex PLC have formed a joint venture – Chemcel Pvt Ltd. – that will build and operate a processing facility near Colombo, Sri Lanka, to manufacture bio-based superabsorbent polymers. These products are commonly used in food packaging, personal-care products and various industrial applications.
ADM will be the majority owner of the venture and will market the plant’s production of ADM’s BioSAP™ -brand superabsorbents. The BioSAP produced at the plant will be derived from starches obtained from agricultural feedstocks. Superabsorbent polymers, or SAPs, are traditionally produced from petroleum derivatives.
“The marketplace is eager for renewable, high-performance alternatives to petroleum-based superabsorbents,” said Chris Cuddy, president, ADM Sweeteners and Starches. “The participants in this joint venture have considerable experience developing, manufacturing and marketing renewable chemicals from agricultural sources, so we’re optimistic about the value our collaboration will create for our customers.”
“Our companies have consistently looked at ways to add value to both domestic and imported agricultural products,” said Mr. B.R.L. Fernando, chairman, CIC Holdings PLC and Chemanex PLC. “This new joint venture offers us a technology platform that combines the research and development expertise of a major global agricultural processor with the available facilities and knowledge of CIC and Chemanex. This relationship would be a starting point in adding value for agricultural commodities produced locally, which in turn could help provide opportunities for stable incomes in our rural communities.”
For more than a century, the people of Archer Daniels Midland Company (NYSE: ADM) have transformed crops into products that serve vital needs. Today, 30,000 ADM employees around the globe convert oilseeds, corn, wheat and cocoa into products for food, animal feed, industrial and energy uses. With more than 265 processing plants, 460 crop procurement facilities, and the world’s premier crop transportation network, ADM helps connect the harvest to the home in more than 140 countries.
About CIC Holdings:
CIC Holdings PLC is a major input and technology supplier to the agricultural sector of Sri Lanka. The company is involved in the cultivation of rice, corn and soya bean in their own farms, and also leveraging an extension and procurement network. Animal feed is another major component of the company’s business. The Company is committed to uplifting rural incomes by promoting modern technology, management and planting materials, including seeds, to Sri Lanka’s farmers, who account for nearly 30 percent of the workforce.
About Chemanex PLC:
Chemanex PLC is a Speciality Chemical manufacturer and supplier to both local and export markets. The company’s product portfolio caters to the needs of the detergent, mining and other industries. Their key product is an Anti Soil Redepositing Agent.
Source: ADM, press release, 2013-08-23.