11 April 2001 16:19 [Source: ICIS news]
HOUSTON (CNI)--US consumer products giant Procter & Gamble (P&G) has allied with agricultural conglomerate Archer Daniels Midland (ADM) to explore joint opportunities in naturally derived chemicals, the companies said Wednesday.
The alliance stops way short of anything formal, such as a joint venture. But the companies said it does mark the broadening of innovative paths for each.
In a statement, Ian Edwards, managing director of P&G's chemicals business, said P&G wants to work with ADM because that company has "demonstrated the ability to develop innovative natural-based products from its raw materials and we look forward to working with them to create and market new products that contribute to their growth and ours."
P&G's chemicals business generates about $900m (Euro1bn) in annual sales from production of oleo chemicals. P&G uses coconut and palm kernel oils for its raw materials, P&G spokesman Martin Herrington told CNI.
Herrington said it remains much too early to speculate on potential applications for new processes but he did emphasise that the companies will not limit their interests to pharmaceuticals.
He said: "We have no specific focus on any one area. But we do have a number of ideas. It's really a research collaboration seeking to combine the strengths of the two companies."
Herrington cited ADM's strengths in corn and soybean production as an opportunity for P&G to broaden its base of natural resources for chemical activities. He said the alliance has not established any deadlines for its next stage of development.
P&G is headquartered in Cincinnati, Ohio and ADM is based in Decatur, Illinois.
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