DGAP-News: KTG Agrar takes over 1,000 hectare farm
(firmenpresse) - KTG Agrar AG / Acquisition
26.07.2010 07:50
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KTG Agrar takes over 1,000 hectare farm:
Geographic diversification continues with new farm in Thuringia
Hamburg, 26 July 2010 - KTG Agrar AG (ISIN: DE000A0DN1J4) has acquired a
farm with an agricultural acreage of roughly 1,000 hectares in Thuringia,
which will further expand its position as a leading agricultural company in
Europe. Being KTG Agrar's first farm in Thuringia, it contributes to the
company's geographic diversification. More than 20 locations between
Thuringia and Usedom in Germany as well as in Lithuania, the Baltic EU
member state, are an important factor that makes the company independent of
regional conditions. 'This has allowed us to reap a stable harvest even in
relatively dry years such as 2006 and to benefit from rising agricultural
commodity prices,' says Siegfried Hofreiter, CEO of KTG Agrar AG.
The company is optimistic about the 2010 agricultural season. While the
volume will be a bit lower following the record harvests of the past two
years, prices are much higher. At the commodity futures exchange, the
prices of maize, rapeseed and grain have increased by about 20 percent in
the past weeks. Says Ulf Hammerich, Board member in charge of KTG Agrar
AG's agricultural activities: 'This spring we have contracted a much
smaller amount of grain, which means that we will clearly benefit from the
latest price increases.' Rising agricultural commodity prices are usually
followed by higher fertiliser prices. Accordingly, KTG Agrar has already
covered most of its fertiliser requirements for the 2011 season at
favourable conditions.
KTG Agrar now plans to continue its growth in Thuringia and to exploit the
efficiency advantages of large-scale farming. Going forward, the
acquisition and lease of new farmland in the region will be managed by the
new farm, which is situated south-west of Erfurt. Like most farms in
Thuringia, it has a large green space, which is ideal for the production of
biogas, the current growth driver of KTG Agrar. 'We have already begun to
plan a biogas plant at the new farm,' says Dr. Thomas Berger, KTG Board
member in charge of the biogas activities. 'The plant will probably have an
electrical output of 2 to 3 megawatts.' Construction is scheduled to begin
in 2011. The company plans to have biogas plants with a combined output of
20 megawatts connected to the grid by the year 2012 and would thus almost
double its current capacity of eleven megawatts.
At the same time, KTG Agrar will continue to expand its farmland. While
most of the company's farmland in Germany is leased under long-term
contracts, most of the land in Lithuania is owned by KTG Agrar. Says
Siegfried Hofreiter: 'Good soil, high precipitation, legal certainty and
short waterways to the main output markets mean that Lithuania has ideal
conditions for farming. This is why land prices in the country have been
rising for several years.' KTG Agrar acquired the first fields in the
Baltic country in 2005. Since then, land prices have tripled to more than
EUR 3,000 per hectare in spite of the economic crisis. Nevertheless, prices
are still much lower than in east Germany (EUR 10,000) and west Germany
(EUR 26,000). The added value potential for farmland in Lithuania and the
new federal states is still high. KTG Agrar will continue to benefit
significantly from the dynamic growth also in future.
About KTG Agrar:
With cultivable land of more than 30,000 hectares, KTG Agrar AG is one of
the leading producers of agricultural commodities in Europe. The
Hamburg-based company's core area of expertise is the organic and
traditional cultivation of market products such as cereals, maize and
rapeseed. For organic market products KTG Agrar is the european market
leader. The company mainly produces in Germany but has also operated
production in the EU full member state of Lithuania since 2005. The third
mainstay the production of bioenergy. At present, KTG Agrar operates biogas
plants with a total capacity of around eleven megawatts. In the year 2009,
KTG achieved a total output of EUR 59,7 million and EBIT of EUR 9.2
million. Since November 2007 the company is listed on the Frankfurt Stock
Exchange and currently mote than 200 employees. Further information can be
found at www.ktg.ag.
Contact:
Investor Relations / Press
Fabian Lorenz
IR.on AG
Tel: +49 221 914097 - 6
E-Mail: fabian.lorenz(at)ir-on.com
26.07.2010 07:50 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: KTG Agrar AG
Ferdinandstr. 12
20095 Hamburg
Deutschland
Phone: +49 (0)40-303 76-47
Fax: +49 (0)40-303 76-799
E-mail: info(at)ktg-agrar.de
Internet: www.ktg-agrar.de
ISIN: DE000A0DN1J4
WKN: A0DN1J
Listed: Freiverkehr in Berlin, Düsseldorf, München, Stuttgart; Open
Market (Entry Standard) in Frankfurt
End of News DGAP News-Service
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Datum: 26.07.2010 - 07:50 Uhr
Sprache: Deutsch
News-ID 24382
Anzahl Zeichen: 0
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Kategorie:
Business News
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