Thirty million euros for more grain
Pressemitteilung: Press Release from the DEG, 09. 12. 2008
Press Release from the DEG, 9.12.2008
* Long-term DEG loan for Romanian S.C. Agri Concept Europe S.R.L.
* German ATON GmbH is the project partner
With the growing demand for basic food all over the world agricultural production has to be further increased.
This is where a project comes in which DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, is financing in Romania: the expansion of S.C. Agri Concept Europe S.R.L. (Agri) which, on an area of almost 30,000 hectares in the northwest of the country, mainly grows wheat, corn and soy and which also operates its own grain mill. The company is currently building 23 modern tower silos to be able to store more grain and is increasing the processing capacity of the mill. For this purpose, DEG provides a long-term loan of 30 million euros. Further 20 million euros are financed by the German partner, the Fulda-based equity investment company ATON GmbH.
With its fertile lands, the Banat in the northwest of Romania offers favourable conditions for agriculture. However, the new EU member state Romania needs to modernise its processing structures in order to comply with EU standards and to make use of the opportunities of the common market.
The project will boost modern infrastructure for storage and processing of locally grown agricultural produce. Agri has a staff of about 350 and has created 100 new jobs within the scope of this investment. Moreover, the company offers measures of qualification and advanced training and cooperates with the local agricultural university. DEG provides long-term capital and accompanies a German enterprise in its foreign investments. The essential facilities and machinery will be imported from Germany.
DEG, one of Europe’s largest development finance institutions, has been active in Romania since 1996. The focus of its commitment is on the financial sector, the promotion of small and medium sized enterprises and on accompanying German companies, mainly from the manufacturing industry. Within the scope of a transition period after the EU accession, DEG will continue to co-finance private-sector companies in Romania until 2010.
