“This year, we have finalized the third alfalfa processing factory after completing the first unit four years ago and the second unit in 2020. We have invested EUR65 million in the three factories in the Great Braila Island (…)”, Mihai Solomei, CEO of Agricost, told Ziarul Financiar.
In 2019, Agricost had a cultivated area of alfalfa covering 2,500 hectares and the objective was to grow this area fivefold over the next five years, until 2024. Massive investments were carried out in the context in which the company was acquired in 2018 by Al Dahra Agriculture LLC of the United Arab Emirates, in a deal valued at EUR200 million at that time.
Besides Romania, investments also targeted Serbia and Bulgaria where the company opened two alfalfa processing plants.
Agricost has invested over EUR120 million in the Great Braila Island so far, according to a recent statement by Stefan Fusea, the President of the Braila Chamber of Commerce.
Agricost ended 2020 with a turnover of RON410 million, up 8% on the year, and with a RON87 million profit, slightly lower than the 2019 level, per finance ministry data. Al Dahra Agriculture Romania, which became operational in 2020, reported revenue of RON567 million and a net profit of RON4 million. The two companies altogether have 800 employees.