Carr's Milling (UK) Acquires Stake in CHS Joint Venture ACC Feed Supplement
Date Posted: August 20, 2013
Carr's (CRM.L), the agriculture, food and engineering group, announces that its wholly owned USA subsidiary, AFS Inc. ("AFS"), is investing in a newly established joint venture for the production of its patented low-moisture feed block products.
The new joint venture company, to be called ACC Feed Supplement LLC ("ACC"), will be 50 per cent. owned by AFS and Consumer Supply Distributing LLC ("CSD"). CSD is 50% owned by existing AFS customer, CHS Inc ("CHS").
ACC will build a low-moisture feed block plant at the premises of CSD in Sioux City, Iowa with an annual capacity of 12,000 tonnes, incorporating proprietary processing technology.
The new plant will commence production in the second half of 2014 and will supply customers of AFS, CHS and CSD.
CHS is a leading global agribusiness owned by farmers, ranchers and co-operatives across the USA, and supplies: energy, crop nutrients, grain marketing services, livestock feed, food and food ingredients.
CHS preferred stock is listed on NASDAQ and is a Fortune 100 company.
Tim Davies, Chief Executive of Carr's, commented:
"Investing in ACC is in line with our strategic objective of building our share of the US low-moisture feed block market.
"We are experiencing continuing growth and demand for our patented low moisture feed blocks both in the USA and across all markets.
"ACC adds to our coverage of the USA where CHS and CSD have a significant, nationwide sales and distribution network."
ACC will add to existing low-moisture feed block plants in Nevada, Oklahoma and South Dakota, increasing AFS' presence in the Central, Southern and Western markets in the USA.
For more information, call 01228-554 600.