LONDON, July 2 (Reuters) - Oilseed processor and logistics company Sodrugestvo Group SA said on Monday that Mitsui and Co Ltd has become a 10-percent shareholder and formed a strategic alliance to target grains markets in the North Africa and the Middle East.
“Together we are going to develop new markets, especially North Africa and the Middle East, where so far they are not present and which are key targets for them,” Sodrugestvo Chief Executive Stephane Frappat told Reuters.
Sodrugestvo has railcars and storage facilities in Russia and a port operation at Kalinigrad on the Baltic Sea.
“The concept of the alliance is to optimize our existing infrastructure by utilizing an outflow of grains from Russia,” Frappat said.
Sodrugestvo also plans to collaborate with Mitsui on soybean origination in Brazil where both companies have operations.
The Luxembourg-based company had consolidated sales of nearly $2 billion in the fiscal year which ended on June 30.
Frappat said the company’s revenues should increase significantly over the next year with a new oilseed crushing plant due to start operating in Kalinigrad in February, which will increase crushing capacity to 8,500 tonnes per day from 3,300 tonnes at the moment. (Reporting by Nigel Hunt; Editing by Leslie Gevirtz)