“They are interested to sell the silo in Baneasa and the facility in Vadu Lat. It’s about the company rethinking its business. It is only natural to drop those elements that generate costs and no revenue,” said the sources.
The silo that Cargill plans to sell has a 44,000-ton storage capacity and the handling facility can be used to store another 16,000 tons.
The US-held trader has been preserving the two facilities are they are for a while now, and did not even put them on its website.
The market value of the two storage facilities may be EUR1 million to EUR2 million.
The trader’s intention comes after the portfolio cleanup it performed this spring when it sold two silos in Braila and Ialomita to French group Soufflet. Cargill aggressively bought silos from 2001 through 2011, during which time they built their network in Romania. Agricultural yield will be 30% lower this year as a result of the drought, after agriculture contributed EUR18 billion to EUR19 billion to the economy in 2011.
(English version by Loredana Fratila-Cristescu)