Olam Agri acquires Asia Africa Rubber Industry
2
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Part of the Olam Agri team
Olam Agri has announced the completion of its acquisition of Asia Africa Rubber Industry S.A. (ASAF), which expands the company’s rubber processing capacity in Côte d’Ivoire and enhances its ability to meet rising global customer demand for responsibly sourced natural rubber.
ASAF now adds 176,000 metric tonnes (MT) to Olam Agri’s annual rubber processing capacity, giving it significantly improved operational efficiency and supply reliability. The acquisition is expected to unlock synergies across its global logistics, supply chain, trading and marketing network.
The acquisition strengthens the supply of responsibly sourced rubber to key export markets whilst also increasing access to international rubber customers through ASAF's existing strategic customer partnerships. Côte d'Ivoire has grown into the world's third-largest producer of natural rubber and exporter of TSR, driven by a significant scale-up of rubber cultivation and local processing capacity.
Olam’s integrated rubber business extends across the rubber value chain and spans trading, processing, and marketing, with in-depth expertise in rubber processing. The company currently operates state-of-the-art smart factories in Côte d’Ivoire with trading and marketing offices in Singapore, Shanghai, Bangkok, Jakarta and Ho Chi Minh City, supporting global trade flows of over 750,000 MT annually. The company offers traceable, sustainable products, delivering multiple grades of natural rubber to meet diverse customer needs and serving the majority of the top tyre makers globally.
The acquisition advances Olam’s commitment to grow its sustainable, traceable natural rubber business and the additional processing capacity and greater control over origination in Côte d'Ivoire enable an extension of plot-level traceability and responsible-sourcing standards. That will support customers’ due-diligence and deforestation-free supply chain requirements as regulatory and buyer expectations continue to rise.
The acquisition of ASAF marks an important milestone for the company’s rubber business. Over the past five years, Olam has expanded processing capacity in Côte d’Ivoire more than four-fold through sustained investment across the value chain. ASAF builds on that progress and reflects a long-term commitment to investing in the country. As demand for traceable and responsibly sourced natural rubber continues to grow, Olam is now well-positioned to provide customers with the quality, consistency and service they require.
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