World Grain - July 2014 - 10

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Trimex buying Gruma
wheat milling business
MONTERREY, MEXICO - Grupo Trimex, SA de CV has reached
agreement to acquire the wheat flour milling operations of Gruma
SAB de CV in Mexico. As part of the $200 million transaction,
Mexico City, Mexico-based Grupo Trimex will acquire all the shares
representing Molinera de México, SAB de CV's capital stock, owned
by Gruma, as well as the assets owned by a subsidiary of Grupo
Industrial Maseca, SAB de CV, related to wheat flour production.
Gruma said proceeds from the sale will be used primarily to pay
down Gruma and Gimsa's corresponding debt, thus strengthening
the financial structure of both companies.
"This transaction is in line with the company's strategy of focusing on
its core businesses, always aiming to enhance value creation," Gruma said.
Grupo Trimex is a Mexican milling company with almost a
30-year history in the industry.

According to the 2014 Grain & Milling Annual published by Sosland Publishing Co., Gruma operates flour mills in Juarez in the state
of Chihuahua (60 tonnes per day milling capacity), Gomez Palacio in
Durango (400 tonnes), Naulcalpan in Estado de Mexico (500 tonnes)
and Puebla in Puebla (1,050 tonnes).
Grupo Trimex operates mills in Mexico City (three mills,
with daily capacity of 300 tonnes, 480 tonnes and 500 tonnes),
Acapulco in Guanajuato (no capacity information available),
Irapuato in Guanajuato (180 to 200 tonnes), Oaxaca in Oaxaca
(no capacity information) and Coatzacoalcos in Veracruz (no
capacity information).
The transaction is subject to the approval of the Mexican Federal
Trade Commission and to certain closing conditions agreed upon by
the parties. The closing is expected to take place by October.

Cargill expands wheat processing plant in Russia
EFREMOV, RUSSIA - Cargill said on June
19 that it has invested $100 million in its
Starches and Sweeteners facility in Efremov,
Russia, upgrading its wheat processing plant
and adding state-of-the-art equipment and
technology. The plant will process 500,000
tonnes of wheat a year - almost doubling
its original capacity and creating additional
market opportunities for farmers in the Tula
region of Russia.
This production line forms part of Cargill's
multi-functional production site in Efremov,

and it will create additional market opportunities in this wheat growing region, where local farmers will benefit from having a reliable
and sustainable outlet for their wheat.
Natalia Orlova, head of Cargill's food
business in Russia, said, "This project is a
reflection of our commitment to the Tula region and to Russia. Effective use of technology allows us to use the natural potential of
our local wheat to its maximum effect. We
can be useful to our customers and communities and help them to thrive."

The technology and equipment of the new
line are in full compliance with international
safety standards and quality that allow Cargill to have zero waste. The food ingredients
produced at this plant are used in different
food and feed industries. A wide range of
starch-based glucose, maltose and glucosefructose syrups are delivered to Russian
companies producing soft drinks, beer, confectionery, while starch is shipped to paper
and corrugated cardboard industries, and
also to the mixed fodder plants.

Investments by Cargill have brought the annual wheat processing capacity of its Efremov, Russia facility to 500,000 tonnes. Photo courtesy of Cargill.
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World Grain - July 2014

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