With a dedicated port already for the South, Glencore now will also import agri-bulks into the North through Teesport to support expansion of its presence in the U.K. The Teesport-bound imports will serve the prime livestock producing centers of the U.K., including Yorkshire, Humberside, the North of England and Southern Scotland.
Glencore’s new agri-bulk terminal operates from Teesport’s newly constructed deep water quay completed in February. Offering depths of up to 14.5 meters, Teesport welcomed the mv Adrianna Rose in November carrying 54,000 tonnes of soyfeed products from Argentina. In October, Glencore Grain, a part of Glencore Plc, a natural resource company, announced the launch of a new animal feed products marketing business in the U.K.
|James Maw, Glencore U.K.’s managing director.|
“The opening of this dedicated import facility and direct distribution channel into the U.K. now gives a fully accredited and assured supply chain for quality products right through from crush to U.K. consumers,” said James Maw, Glencore U.K.’s managing director. “Teesport’s deep water and high-capacity handling facilities make it a great choice for Glencore’s Northern base, enabling significant imports. We will continue to work closely with PD Ports to strengthen our U.K. infrastructure for the long term.”
“Teesport is well placed to serve Glencore’s northern customer base and to further support the U.K.’s import/export market for grain,” said Jerry Hopkinson, PD Ports’ managing director, Bulks and Port Services. “This announcement complements our recent investment to redevelop number one quay in support of our strategic vision to expand the port’s capacity and capability to handle a more diverse range of commodities across a number of new market sectors.”
In September 2015, Glencore Plc announced it was seeking investors in its agriculture unit as part of a plan to reduce its $30 billion debt by $10 billion. In December 2015, the company said it already had reduced debt by $8.7 billion and had revised its debt reduction target to $13 billion.
Glencore Plc announced on April 6 that the Canada Pension Plan Investment Board (CPPIB), Canada’s largest pension fund, plans to purchase a 40% equity interest in Glencore Agri for $2.5 billion cash. On June 8, the company entered a definitive agreement with British Columbia Investment Management Corp. for the purchase of a 9.99% stake in Glencore Agricultural Products for $624.9 million payable in cash upon closing.