Basel, Switzerland-based agricultural products company
) announced an agreement with Cellulosic Ethanol Technologies,
LLC - a subsidiary of Quad County Corn Processors. The agreement
allows Syngenta to use the latter's Adding Cellulosic Ethanol
(ACE) technology - a new process for ethanol plants.
ACE technology is considered apt for increasing the plant's
ethanol production and increasing corn oil production and
ensuring higher protein content in Dried Distillers Grains. The
technology, when combined with Syngenta's Enogen corn trait, will
enable the starch and the fiber in a corn kernel to be converted
Corn sales are a major revenue driver for Syngenta. Corn sales
represented roughly one fourth of the company's total revenue in
2013. The deal is expected to strengthen the company's foothold
in the corn market.
Syngenta has been attempting to gain market share through
acquisitions and product launches. Recently, the company
announced the acquisition of Italian durum wheat seed company
Società Produttori Sementi.
Apart from durum wheat seed, Società Produttori Sementi also
deals with common wheat and alfalfa. The durum wheat is grown in
over 330,000 hectares of land in Bologna. The deal will enable
farmers in Italy and other countries to fulfill the increasing
demand for pasta which has a global market worth $16 billion. The
acquisition is expected to significantly boost Syngenta's
revenues in the upcoming quarters.
With a market capitalization of $34.9 billion, Syngenta
currently holds a Zacks Rank #3 (Hold). Some better-ranked stocks
in the industry include
The Andersons, Inc.
Gruma S.A.B. de CV
CVR Partners, LP
). All these stocks carry a Zacks Rank #2 (Buy).
ANDERSONS INC (ANDE): Free Stock Analysis
GRUMA SA-ADR B (GMK): Free Stock Analysis
SYNGENTA AG-ADR (SYT): Free Stock Analysis
CVR PARTNERS LP (UAN): Free Stock Analysis
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