Bunge has announced that it has entered into a definitive asset purchase agreement with Fuji Oil New Orleans, LLC, to acquire its newly constructed, port-based refinery located in IMTT’s Avondale Terminal, Louisiana.
The agribusiness and food company made the transaction through its Bunge Loders Croklaan joint venture with IOI Corporation Berhad.
Expand Customer Base
The acquisition of the facility, which has multi-oil refining capabilities, will enable Bunge to expand its existing customer base, it said in a statement.
The completion of the transaction is subject to customary closing conditions, and Bunge expects to start serving customers from the facility by the second quarter of the year.
It said that the acquisition will provide Bunge with a 'scalable, complementary port-based footprint' capable of connecting North American food, feed, and fuel customers to global markets.
'Value-Added Oils Business'
“This acquisition delivers on our long-term strategy to expand our value-added oils business by accelerating reach across North America," said Aaron Buettner, Bunge’s President, Food Solutions. "This facility will connect with our existing footprint and enable Bunge to better serve our customers."
Bunge plans to 'significantly expand' the facility's current capacity, which it added will create new job opportunities for the local community.
"We are excited for the opportunity to continue to expand and grow, working alongside great local partners such as IMTT, who Bunge has had an 80-year partnership with storing and shipping vegetable oils in the Gulf," added Brett Caplice, Bunge's VP of refined and specialty oils in North America.