US meat processor Cargill has announced plans to invest $20 million into its animal nutrition facilities in South Africa.
Cargill plans to buy out shares in its NuTec South Africa business from co-owner Astral Foods, giving it a majority shareholding and management control of the company, which makes vitamin and mineral premix for animal feed. There are also plans to build a new plant at NuTec’s existing facility in Pietermaritzburg.
Under the deal, NuTec will be migrated into Cargill’s existing Provimi brand. Astral Foods – an integrated poultry producer – will retain a 25% stake in the business.
“We are delighted to announce this investment, which will allow Provimi to better serve our customers in sub-Saharan Africa,” said Gudo Klein Gebbink, Provimi’s general manager for the region.
“We see great potential and opportunities to expand our business. The rapidly growing markets and increasing animal productivity in this strategic area are an excellent fit for Provimi’s market approach. Supported by our worldwide research and development capabilities, the combination of high-quality nutritional products and top-class technical support will enable our customers to further optimise their results and effectively produce safe food.”
Johan Steyn, managing director of Cargill in South Africa, said the plans would allow Cargill to increase its support of agriculture in sub-Saharan Africa, as well as reinforcing its existing relationship with Astral Foods.
The deal is subject to approval by the South African Exchange Control, with completion expected within weeks.