The construction of the Akola Group seed factory in Latvia will be financed by Swedbank AS
10 September 2024 - 8:19AM
UK Regulatory
The construction of the Akola Group seed factory in Latvia will be
financed by Swedbank AS
The Latvian company SIA Dotnuva Seeds, indirectly owned by AB
Akola Group, has agreed with Swedbank AS on financing the
construction and equipment of a seed preparation factory in Latvia.
The loan amounting to 7 million euros was granted for ten years. AB
Akola Group itself became the guarantor of the loan.
"We have entered a new stage of the group's development and are
expanding our farmer service capacity in neighboring Latvia. In
April, we opened a new agricultural trade and service center in
Jekabpils, a modern workshop for servicing agricultural machinery,
and a spare parts warehouse. A few days ago, we concluded a deal to
acquire the Latvian grain trader SIA Elagro Trade. Investing around
EUR 9.5 million in the seed factory project is another consistent
step in Latvia. In addition to the new seed factory, warehouse
buildings and site facilities in Iecava will be renovated. We are
using our own funds for all these works, but a good financial
partner is one of the most important components of the project,"
says Mažvydas Šileika, CFO of AB Akola Group.
“This investment marks new opportunities for Latvian farmers.
The planned capacity of the plant will allow the company's products
to reach Latvian farmers faster and reduce the company's logistics
costs, which is important for further growth of the company. We are
honored to be the financial partner of SIA Dotnuva Seeds in the
next stage of development, which will cover the needs of farmers
across the Baltics”, marks Jevgenijs Ivanovs, the Head of the
Corporate Customer Division and Member of the Board at
Swedbank.
Founded in Latvia in 2023, SIA Dotnuva Seeds laid a capsule in
the foundation of the seed factory in Iecava in July this year. The
4,600 square-meter plant, operational next summer, is expected to
produce around 20,000 tons of seeds a year in its first stage.
These seeds will be intended for farms in Latvia and Estonia.
"The demand for certified seeds in the Baltic States is
increasing as farmers realize their benefits. Both our seed
production and trade in them are growing; in the financial year
that ended in June, we produced 32 thousand tons of certified seeds
for cereals, rapeseed, and grass mixtures at the seed factory in
Dotnuva - more than our official capacity of 30 thousand tons is.
And we sold even more – 35 thousand tons. A seed factory in Latvia
will benefit both us and farmers - we will have faster service,
lower logistics costs, and localization of plant varieties," says
Jonas Bakšys, Member of the Management Board of AB Akola Group and
CEO of Dotnuva Seeds.
SIA Dotnuva Seeds is directly managed by AB Linas Agro, the
largest company in revenue owned by AB Akola Group and one of the
largest agribusiness companies and grain exporters in the Baltic
States. Linas Agro, which operates eight companies in the Baltics,
has been supplying products and services to farmers for over 32
years.
About AB Akola Group
AB Akola Group operates the largest agricultural and food
production group in the Baltics, with 4.9 thousand employees. The
group operates along the entire food production chain from farm to
fork, producing, preparing and marketing agricultural and food
products, as well as supplying goods and services to farmers. The
group's financial year starts in July and its unaudited revenue for
the last financial year was EUR 1.5 billion. In addition to the
seed factory in Latvia, the Group plans to launch two new factories
for instant noodles and breadcrumbs in 2025.
More information:
Mažvydas Šileika, CFO of AB Akola group
Mob. +370 619 19 403
E-mail: m.sileika@akolagroup.lt
Akola Group Ab (LSE:0NSG)
Historical Stock Chart
Von Nov 2024 bis Dez 2024
Akola Group Ab (LSE:0NSG)
Historical Stock Chart
Von Dez 2023 bis Dez 2024
