Archer Daniels Midland Co. said Feb. 26 that it signed an agreement with privately held Cargill Inc. to form a joint venture offering soybean meal and oil in Egypt.

Under the terms of the agreement, the 50/50 joint venture will own and operate the National Vegetable Oil Co.'s soy crush facility at Egypt's Borg Al-Arab and related commercial and functional operations. These operations include a Swiss merchandising operation that will supply soybeans to the crush facility.

The two agricultural products companies plan to launch the joint venture in mid-2018. The agreement is subject to regulatory review and has not been completed.

Cargill is expanding the capacity of the soy crush facility from 3,000 metric tons of daily crush capacity to 6,000 metric tons. The facility will have the capacity to produce higher-protein soybean meal that will lower the country's imports.

The joint venture, which will expand the geographic footprint of both companies, will be a standalone entity with its management team reporting to a board of directors appointed by both companies.