Danish Agro establishes Swedish grain terminal
Danish Agro has signed an agreement with Swedish KLF to build a joint grain terminal.
Danish Agro's Swedish subsidiary Swedish Agro has signed an agreement with Kristianstadsortens Lagerhusförening (KLF) to build a joint grain terminal in Åhus. The agreement will mean the setting up of a 50/50-owned joint venture company, 'Swedish Grain Terminal AB', to take over Kristianstadsortens Lagerhusförenings (KLF) existing activities in Åhus and to expand capacity there from approx. 50,000 tonnes to 100,000 tonnes. The facilities are expected to be completed by late 2019.
Danish Agro's Group CEO, Henning Haahr, is delighted with the agreement, which will not only benefit the two companies, but also Swedish farmers.
"Swedish Agro has a clear strategy designed to ensure value for farmers through an efficient infrastructure and more opportunities for export. The agreement with KLF will provide more harbour and warehouse facilities in a strong farming area. Not only will it boost the competitiveness of both companies, but also the general competition on the Swedish market to the benefit of Swedish farmers. We have been delighted with the open, mutually trusting dialogue with KLF that has resulted in this agreement," he states, before adding:
"The port at Åhus has considerable strategic importance for KLF and us, and has a level of potential that can now be fully realised thanks to the agreement. The joint investment is an expression of financial responsibility and will ensure that we can now build the most efficient, modern and flexible facilities to the benefit of the companies concerned, and Swedish farmers. We look forward to getting started!"
Swedish Agro and KLF have worked closely within the procurement of fertiliser and plant protection via DLA Agro Sverige for many years. Swedish Agro employs 137 and has its head office in Kalmar. KLF employs 30 and has its head office in Kristianstad.