Olam Agri acquires ‘Asia Africa Rubber Industry’ to grow its Rubber Processing Capabilities and Global Customer Offering
Olam Agri has completed the acquisition of Asia Africa Rubber Industry S.A. (ASAF), growing its rubber processing capabilities in Côte d’Ivoire and its ability to serve rising global customer demand for responsibly sourced natural rubber.
ASAF adds 176,000 metric tonnes (MT) to Olam Agri’s annual rubber processing capacity in Côte d’Ivoire, giving the company greater scale in the country and geographic density that improves operational efficiency and supply reliability. The acquisition is expected to unlock synergies across the company’s global logistics, supply chain, trading and marketing network, strengthening the supply of responsibly sourced rubber to key export markets. It also increases access to international rubber customers through ASAF’s existing strategic partnerships.
The acquisition advances Olam Agri’s commitment to sustainable, traceable natural rubber. Additional processing capacity and greater oversight over origination in Côte d’Ivoire enables the company to extend plot-level traceability and responsible-sourcing standards. This will support its customers’ due-diligence and deforestation-free supply chain requirements as regulatory and buyer expectations continue to rise.
Commenting on the ASAF acquisition, Ashok Hegde, CEO – Fibre, Agri Industrials & Ag Services, Olam Agri said: “The acquisition of ASAF marks an important milestone for our rubber business. Over the past five years, we have 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 our long-term commitment to investing in the country. As demand for traceable and responsibly sourced natural rubber continues to climb, we are well-positioned to provide customers with the quality, consistency and service they require.”
Vijeth Shetty, Global Head of Rubber, Olam Agri, added: “ASAF is a strong strategic fit with our rubber operations in Côte d’Ivoire. Its processing operations, sourcing network and customer relationships complement our business, improving efficiency, deepening our capabilities across the value chain and broadening our reach in key markets. We are excited to welcome ASAF’s employees into Olam Agri and to build on the solid foundations they have established.”
Global natural rubber consumption is being driven by automotive and industrial applications, with annual demand of around 14–15 million MT. Industry forecasts point to sustained long-term demand for technically specified natural rubber (TSR). 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 Agri’s integrated rubber business spans trading, processing, and marketing. With deep expertise in rubber processing, the company operates state-of-the-art smart factories in Côte d’Ivoire and trading and marketing offices in Singapore, Shanghai, Bangkok, Jakarta and Ho Chi Minh City, supporting global trade flows of over 750,000 MT annually. It 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.
