DGAP-News: KTG Agrar AG acquires stake in Russian agricultural group in the Chernozem region
(firmenpresse) - DGAP-News: KTG Agrar AG / Key word(s): Investment/Bond
KTG Agrar AG acquires stake in Russian agricultural group in the
Chernozem region
01.10.2013 / 13:00
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- Four years' experience in local farm management
- Business model integrates crop farming, fodder production and pig
breeding
- Strong partners to exploit opportunities in a key market for the global
agricultural sector
Hamburg, 1 October 2013 - KTG Agrar AG (ISIN: DE000A0DN1J4) has been active
as a farm manager in Russia since the 2009/2010 farming season. Following
on from the good experience gained in recent years, KTG Agrar has decided
to make an investment in the Sojuz Group, which includes the companies
Agro-Sojuz based in the Belgorod Oblast and Mjaso-Sojuz based in the
Voronezh Oblast. The Sojuz Group has been active in the fertile Chernozem
region some 600 km to the south of Moscow since the year 2008. Its business
model integrates crop production with pig breeding and fattening. 'This
expansion is being undertaken following a thorough examination. We have
gotten to know the region and its people in recent years and we are
convinced of the opportunities,' says Siegfried Hofreiter, CEO of KTG Agrar
AG. 'Russia is one of the world's key markets for the agricultural sector
and offers outstanding long-term potential. As crop farming specialists, we
want to exploit this potential jointly with our strong partners whose
experience lies in livestock management.' KTG Agrar holds a 17.5 percent
stake in the entire Sojuz Group with immediate effect and will continue to
manage the Group's crop farming activities. Another 17.5 percent stake is
held by RKS Agrarbeteiligungs GmbH. KTG Agrar and RKS Agrarbeteiligungs
GmbH have pooled their combined 35 percent in the Sojuz Group stake in
Hamburg-based TKS Union AG. The majority shareholder is Tönnies Russland
Agrar GmbH.
'I look forward to continuing our close cooperation with KTG Agrar.
Together we have built a highly modern agricultural company in recent
years,' says Clemens Tönnies, one of the shareholders in Tönnies Russland
Agrar GmbH.
The Sojuz Group's core business consists of agricultural production in the
Chernozem region as well as pig breeding and fattening as parts of an
integrated business model. The required fodder is sourced from the Group's
own fields. This set-up makes the Group independent from fluctuating fodder
prices and availabilities, maximises production efficiency in all processes
and ensures the best, carefully controlled quality of the fodder. The
Group's own crop farming activities, the use of the most advanced
agricultural equipment and plants as well as highly qualified employees
mean that the pig breeding and fattening activities meet the highest
standards and produce high-quality meat.
The Sojuz Group is currently active in two regions. Since 2007, Agro-Sojuz
is investing in the Belgorod Oblast and today farms some 30,000 hectares
and operates pig fattening farms with an annual output of 650,000 pigs. The
construction of a mixed fodder factory with an annual capacity of 240,000
tons is currently being completed. Says Siegfried Hofreiter: 'Having our
own mixed fodder factory means that we will be able to process our harvest
into fodder ourselves. This way we complete our integrated business model
and can increase our margin significantly. TheMjaso-Sojuz Group was
founded in 2011 and today farms some 15,000 hectares in Voronezh. A pig
fattening farm with a capacity of 65,000 animals per year is currently
under construction and is due to start operation in early 2014. The
combined 45,000 hectares include 15,000 hectares of company-owned farmland.
The rest is used under long-term leases, some of which run for up to 50
years.
Having reported sales of approximately EUR 90 million as well as earnings
before interest and taxes (EBIT) of some EUR 20 million in 2012, the Group
intends to push ahead its growth strategy in the coming years. The medium
term plan provides for up to ten additional pig breeding and fattening
farms including boar sheds with an annual production capacity of 650,000
pigs for slaughter, with the crop fields being extended to 60,000 hectares
at the same time.
About KTG Agrar
With cultivable land of more than 40,000 hectares, KTG Agrar AG (ISIN:
DE000A0DN1J4) is one of the leading producers of agricultural commodities
in Europe. As an integrated supplier, the company produces agricultural
commodities and renewable energy and food. 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 member state of
Lithuania since 2005. As a result of the takeover of Frenzel Tiefkühlkost
and Biozentrale Naturprodukte, KTG has expanded the value chain by the
production of food. In the year 2012, KTG achieved a total output of EUR
168 million and EBIT of EUR 29.5 million. Since November 2007 the company
is listed on the Frankfurt Stock Exchange and had 591 employees at year end
2012. Further information can be found at www.ktg-agrar.de.
Contact
Investor Relations / Presse
Fabian Lorenz
IR.on AG
Phone: +49 221 914097-6
E-mail: fabian.lorenz(at)ir-on.com
End of Corporate News
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Language: English
Company: KTG Agrar AG
Ferdinandstr. 12
20095 Hamburg
Germany
Phone: +49 (0)40-303 76-47
Fax: +49 (0)40-303 76-799
E-mail: presse(at)ktg-agrar.de
Internet: www.ktg-agrar.de
ISIN: DE000A0DN1J4, DE000A1H3VN9, DE000A1ELQU9,
WKN: A0DN1J , A1H3VN, A1ELQU
Indices: HASPAX
Listed: Freiverkehr in Berlin, Düsseldorf, Hamburg, München
(m:access), Stuttgart; Frankfurt in Open Market (Entry
Standard)
End of News DGAP News-Service
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232855 01.10.2013
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