French group Soufflet gets EUR 20 mln from EBRD to expand operations in Poland, Romania and Ukraine

The European Bank for Reconstruction and Development (EBRD) will invest EUR 20 million in French agribusiness group Soufflet to help it expand its network of grain storage and seed production facilities in Poland, Romania and Ukraine, the financial institution announced. Soufflet will consolidate all its existing and future silo and seed plant business in those countries in a new company called International Grains Silos, in which the EBRD will take a stake of no more than 35%. Soufflet Group is one of the leading private operators in the grain chain both in Europe and worldwide. Its strategy in the region is to develop an integrated supply chain, by collecting agricultural commodities from farmers, primary processing at silos and malt production facilities and also selling to export markets or to ultimate users such as breweries and crushing companies. “This new project confirms EBRD's impact on the agricultural sector in Eastern Europe. Our long-lasting partnership with the Bank provides much appreciated support for Soufflet Group’s development of grains production, exportation and processing in the region,” said Laurent Bernasse, Soufflet’ financial officer. Soufflet is currently the largest malt producer in Romania and had a turnover of EUR 40 million in 2013, according to data from the Finance Ministry. The French group entered the local market in 1998 and currently operates Romania’s largest malt factory in Buzau, with a total capacity of 106,000 tons of Pilsen malt per year. The total investment in the factory was EUR 60 million. Soufflet also owns two grain silos in Braila and Tandarei, with a total capacity of 48,000 tons, which it bought in 212 from American group Cargill. Andrei Chirileasa, andrei@romania-insider.com