Golden Agri-Resources (GAR) announced on Oct 6 that it is incorporating a fully-owned subsidiary in Sao Paolo, Brazil.
The new subsidiary, named Golden Agri-Resources Brasil Sociedade Limitada Unipessoal (GAR Brazil), is said to help GAR enhance its sugar trading business.
According to GAR, its European sales team has identified complementary merchandising opportunities in sugar that is aligned with its existing palm oil distribution network and customer profile, which led it to acquire RCMA’s sugar business in November 2019.
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“By taking advantage of GAR’s extensive palm-based distribution capabilities, GAR’s entry into sugar merchandising provides a low cost, asset-light, niche contribution to our business. We can continue to offer excellent service to our existing palm oil customer base, offer an aligned sugar service to those palm customers where it is a related ingredient, and use our distribution capabilities efficiently to serve new and existing, sugar-only customers,” says Paul Hickman, head of global vegetable oil and oilseeds.
“Establishing a presence in Brazil, one of the biggest sugar exporters in the world, is a logical extension of our current sugar activities,” he adds.
GAR Brazil is backed by experienced professionals, with a business focus on containerised white sugar.
Shares in GAR closed flat at 14.2 cents on Oct 5.
