Cargill expands animal nutrition in South Africa
PIETERMARITZBURG, South Africa – Cargill Inc.’s animal nutrition business announced plans to invest approximately $20 million in South Africa.
The company plans to build a new premix and base mix facility at an existing location of NuTec Southern Africa in Pietermaritzburg. The facility will expand Cargill's animal nutrition capabilities in sub-Saharan Africa, according to the company.
Cargill owns 75 percent of the shares in NuTec , which the company’s existing joint venture with Astral Foods, an integrated Southern African poultry producer. Cargill also has managerial control of NuTec. NuTec is a manufacturer of vitamin and mineral premix for the animal nutrition industry. Astral Foods retains a 25 percent of shares in the business and remains an important partner and customer to Cargill. NuTec will migrate its name and product portfolio to Cargill's Provimi brand.
“We are delighted to announce this investment, which will allow Cargill Animal Nutrition to better serve our customers in sub-Saharan Africa,” said Gudo klein Gebbink, general manager for Cargill's Premix and Nutrition Sub-Saharan Africa business. “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 Cargill's animal nutrition business's market approach.
“Supported by our worldwide research and development capabilities, the combination of high quality nutritional products and world-class technical support will enable our customers to further optimize their results and effectively produce safe food,” he added.
Gary Arnold, Astral's business development director said Astral's remaining 25 percent interest will be in a larger specialty premix business.
“The decision to sell a portion of Astral's interest in this business was taken to allow Cargill's animal nutrition business to invest in the redevelopment of the NuTec facility, and simultaneously expand premix sales into African markets,” Arnold said.