EQS-News: Green light for joint venture between AGRANA and INGREDION in Romania

Green light for joint venture between AGRANA and INGREDION in Romania

35 million euros investment will expand starch capacity, increase cost efficiency and enhance competitiveness

The planned joint venture between the food and industrial goods group AGRANA and the global supplier of ingredient solutions INGREDION (NYSE: INGR) obtained clearance for the transaction from all applicable international regulatory authorities, including the European antitrust body.   In September 2024, AGRANA Stärke GmbH, a subsidiary of AGRANA Beteiligungs-AG, signed a joint venture agreement with INGREDION Germany GmbH for the joint development of starch production in Romania. Per the agreement, INGREDION Germany GmbH will acquire 49% of the shares of equity in the Romanian operating entity S.C. AGFD Țăndărei s.r.l. from AGRANA Stärke GmbH.

“We are pleased to expand the partnership between AGRANA and INGREDION through the joint venture. The joint investment aims to increase starch production capacities in Romania, enhance competitiveness and establish a foundation for higher sales volumes of our starch products. This is fully in line with our new Group strategy ‘Next Level’, which includes strengthening the commodity and specialty business as a central aspect,” explained AGRANA CEO Stephan Büttner.

“This is a step-change in our EMEA production capabilities that will allow us to meet the growing demand for texture solutions across Europe, Africa and the Middle East,” said Mike O’Riordan, Senior Vice President Texture & Healthful Solutions EMEA and APAC. “It will reduce our dependence on imports, improve control over our supply chain, and enable us to meet growing customer demand for texture solutions. Additionally, localized starch production will enhance our supply chain sustainability and reduce our carbon footprint.“

As part of the joint venture, AGRANA and INGREDION will jointly invest EUR 35 million in expanding the production in Țăndărei. Construction of the plant expansion is scheduled to start in June 2025. The project will take 2.5 years to complete, but the plant will start producing products in support of the joint venture immediately.

About AGRANA

AGRANA refines agricultural raw materials into high-quality foodstuffs and a wide range of industrial primary products. Around 9,000 employees at 50 production sites worldwide generate annual Group sales of around € 3.5 billion. The company was founded in 1988 and is the global market leader in fruit preparations, the world's leading producer of apple juice and berry juice concentrates and a major producer of customised potato, corn and wheat starch products and bioethanol in the Starch segment. AGRANA is the leading sugar company in Central and Eastern Europe.

With its three Austrian plants in Aschach/Donau (Upper Austria), Gmünd (Lower Austria) and Pischelsdorf (Lower Austria) as well as in Țăndărei (Romania) and Szabadegyhaza (Hungary), AGRANA Stärke GmbH operates at a total of five production sites and has established itself as a specialist in customised starch applications. At about EUR 1.0 billion, the Starch Division accounted for almost a third of Group sales in the past financial year.

About INGREDION

INGREDION Germany GmbH is active in the development and production of various specialty starches that are used as functional ingredients in the production of a wide range of foods. INGREDION Germany GmbH is part of Ingredion Incorporated group of companies, a global provider of ingredient solutions. The INGREDION Incorporated group of companies produces starches, sweeteners and other ingredients from renewable raw materials such as corn, tapioca and the stevia plant and supplies customers in the food and beverage, pet food, pharmaceutical and paper industries.
 

Media Contacts

AGRANA: Markus Simak, +43-1-21137-12084

INGREDION: Rick Wion, +1 708-209-6323

This press release is available in German and English at www.agrana.com and at ir.ingredionincorporated.com.