The Group has concluded Initiatives to enable investment in key areas of growth in Asia and Latin America
Northfield Global Ltd announced the conclusion of several strategic actions to further optimize the Group’s operations and increase overall efficiency. These actions are expected to generate significant cost savings that will be reinvested, among other things, to support the Group strategic priority to expand into Asia markets and enhance its product portfolio. These actions include:
- Optimizing the Company’s generic business cost structure by exiting its investments in Maple Power and Swiss4Energy. The exit will be in a phased approach that is expected to be completed in the second half of 2021.
- Improving operating flexibility and reducing general and administrative costs of its trading arm, My Terra SA, by transferring certain transaction processing activities to third-party global business process service providers.
- Increasing organizational effectiveness by fully integrating the Group commercial, operations, and development functions in Switzerland, Singapore and the USA, respectively, to support the Group’s key strategic priorities.
- Invest in agriculture, with the creation of a Soft Commodity Division within My Terra, and investing into a JV with Brazilian cattle raising and grain producer Grupo Bandeirantes.
Carlos Mundim, CEO of Northfield, said, “These actions are consistent with our strategic priority to reinvent how we work and support our associated strategic priority to expand and enhance our portfolio by enabling investment into new markets and products and building a more differentiated and durable portfolio. We believe these actions will further position Northfield for long-term success and make it a truly global player.”
The actions announced today are expected to result in annualized savings of approximately $73 million and to increase our presence in the South-East Asian Market. In connection with these changes, the Company expects to conclude strategical partnerships in Malaysia for the development of an energy hub consisting of 9 million barrels crude tank storage facility and deepwater receiving terminal to service its clients in the region.
The group also announced it is developing together with Brazilian Grupo Bandeirante Ltda and Malaysian Zebu Cattle Sdn Bhd a future-proof meat processing plant in accordance to Halaal and European standards in Sarawak, with a capacity to 1,000 cattle a day.
About Northfield Global Limited
Northfield Global Limited is a Swiss-domiciled multinational commodity trading company active in a wide spectrum of global energy markets including crude oil and refined petroleum products, natural gas, power, biodiesel, base metals and agricultural products Learn more at www.northfield-group.com.