Olam Agri acquires ASAF, expanding rubber processing capacity in Côte d’Ivoire

Olam Agri has completed the acquisition of Asia Africa Rubber Industry S.A. (ASAF), a move that will add 176,000 metric tonnes to the company’s annual natural rubber processing capacity in Côte d’Ivoire.

The acquisition, completed through Olam Agri subsidiary Panasia International FZCO, is expected to nearly double Olam Agri’s rubber processing capacity in the country. It will give the company greater scale and geographic density while improving operational efficiency and supply reliability.

ASAF operates a natural rubber processing plant in Côte d’Ivoire, with its production exported outside the ECOWAS common market, according to the ECOWAS Regional Competition Authority. The acquisition gives Olam Agri sole control of the company.

Olam Agri said the deal is also expected to generate synergies across its logistics, supply chain, trading and marketing operations, while expanding access to international customers through ASAF’s existing commercial relationships.

The transaction comes as global demand for natural rubber remains driven largely by the automotive and industrial sectors. Olam Agri said annual global consumption stands at around 14 million to 15 million tonnes, with demand for technically specified rubber expected to remain strong.

Côte d’Ivoire has emerged as a major global rubber producer. Olam Agri describes the country as the world’s third-largest producer of natural rubber and a leading exporter of technically specified rubber.

The acquisition is also expected to strengthen traceability across Olam Agri’s supply chain. The company said greater control over sourcing and processing in Côte d’Ivoire will allow it to extend plot-level traceability and responsible-sourcing standards, helping meet increasingly stringent customer and regulatory requirements on deforestation-free supply chains.

Olam Agri said it has increased its rubber processing capacity in Côte d’Ivoire more than fourfold over the past five years through investments across the value chain. The company currently operates processing facilities in the country and has trading and marketing offices in several major Asian rubber markets.

The acquisition strengthens Olam Agri’s position in one of Africa’s fastest-growing rubber-producing markets and gives the company additional capacity to supply international tyre and industrial customers.