Marvesa and SD Guthrie International Limited

SD Guthrie International Limited (SDGI) has acquired a 48% strategic stake in Marvesa Supply Chain Services B.V. (Marvesa), a leading supplier of oils and fats to the European feed and biofuel industry. The acquisition, with a total value of EUR 54 million, marks an important milestone in SDGI's growth and diversification strategy.

With this investment, SDGI strengthens its position within the European market and further expands its operational footprint. The acquisition gives SDGI access to the extensive expertise and distribution networks of Marvesa, which operates in 11 European countries and has a state-of-the-art refinery in Zwijndrecht with an annual production capacity of 450,000 tons.
The acquisition of Marvesa strengthens SDGI's presence in Europe, where it serves customers in 11 countries through its refinery in Zwijndrecht, the Netherlands. This refinery has an annual capacity of 300,000 tons and produces various oils and fats essential for applications such as industrial frying, emulsifiers, bakery and confectionery ingredients, margarines, dairy products, candles and milk substitutes, responding to changing market demand.

Strategic background and rationale

SDGI, formerly known as Sime Darby Oils International Limited, is a leading player within the global palm oil industry and a subsidiary of SD Guthrie Berhad. As one of the largest producers of Certified Sustainable Palm Oil (CSPO), with a 12% market share of global production, SDGI is constantly seeking strategic partnerships to strengthen and diversify its value chain.

The partnership with Marvesa aligns seamlessly with SDGI's long-term vision to reduce dependence on palm oil and expand its portfolio to include other high-quality oils and fats, such as lecithin, soybean oil and soft oils. These products are essential for various industrial applications, including bakery ingredients, margarine, dairy substitutes and industrial frying oils.

"This acquisition represents a crucial step in our strategy to achieve long-term success in emerging markets," said Dr. Shariman Alwani, Chief Executive Officer of SDGI. "To continue to meet changing market demands and more stringent laws and regulations within the industry, collaboration with strong, innovative partners is essential. Our position in Europe is significantly strengthened by this collaboration."

The collaboration between SDGI and Marvesa creates powerful synergies. Marvesa's established trading volumes in lecithin, soy and other soft oils align well with SDGI's diversification strategy outside the palm oil sector. This enables both companies to capture growth opportunities in regions such as North and Central Asia, the Pacific region, the Middle East, Africa and the Americas. Marvesa already has a presence in Indonesia and is well positioned for further growth in Southeast Asia, where demand for animal feed ingredients is growing rapidly.

"As shareholders of Marvesa, we are deeply committed to the company's growth and long-term success. This partnership with SDGI underscores the strength of our company and our shared vision of sustainable value creation. Together we are excellently positioned to drive growth and deliver exceptional value to our customers in Europe and beyond," said Bart de Bruycker, CEO of Marvesa.

The acquisition aligns seamlessly with SDGI's long-term strategy to integrate its value chain and further expand its presence in strategic markets.

Marvesa's role in the market

In recent decades, Marvesa has developed into a key player within the European oils and fats market, with a broad customer base consisting of traders, distributors and multinational producers of animal feed and biofuels. The company has in-depth knowledge of the supply chain and a robust network of suppliers and customers, enabling it to respond quickly and efficiently to industry dynamics.

"We strongly believe in the power of sustainable partnerships. Our partnership with SDGI allows us to further expand our business and strengthen our position in the market," said Bart de Bruycker, Chief Executive Officer of Marvesa. "This move confirms the solid foundation of our company and the shared vision to create value for our customers and partners worldwide."

With a facility in Indonesia and a strategic presence in Southeast Asia, Marvesa also has strong growth prospects in these regions, where demand for high-quality ingredients for animal feed is growing rapidly.

Future impact and market expectations

The acquisition of the stake in Marvesa not only provides SDGI with direct access to the European feed and biofuel industry, but also opens doors to further expansion in North and Central Asia, the Pacific region, the Middle East, Africa and the Americas. Joining forces will allow SDGI and Marvesa to benefit from economies of scale and synergies, enabling both companies to further expand their market share.

With changing regulations and increasing demand for sustainable oils and fats, both SDGI and Marvesa are responding to the need for traceable, quality and efficient supply chains. The combination of Marvesa's strong trading volumes and SDGI's global network provides significant growth opportunities for both companies.

"Through this partnership, we are building a solid and sustainable future for our industry," concludes Dr. Shariman Alwani. "We are confident that this strategic move will enable us to serve our customers worldwide even better and create long-term value."