The three facilities can store about 56,000 tons, thus requiring a EUR7 million to EUR8 million investment, ZF has calculated.
The infrastructure projects Nidera is now conducting are its first investments in Romania since entry in 2002. The company has been operating through partnerships with other companies so far. It has also gone through a change of management recently, with Gaston Figarotta, replacing Victor Beznea who chose to leave to pursue his own business.
“The company has an ambitious investment project in Romania and part of the reason the current country manager was brought was to get this project going,” an industry source said.
The local representatives of Nidera, who have always kept a low profile, chose not to comment on the issue.
The three grain collection facilities Nidera is working on are positioned in strategic agricultural counties and about 100 kilometers away from each other, which shows the company plans to build a network.
However, none of them has any frontage to the Danube, nor is it directly connected to any railway, which means high shipping and handling costs. Nidera focuses on exports and the grain acquired from the three southern Romanian counties is to be directed to Constanta Harbor (SE of the country) the main exit way for Romanian grain.
Nidera will build a 21,000 ton grain collection facility in Bailesti, Dolj County, ZF has calculated based on the documents submitted to the ANPM.
The investment is a thorn in the side of businessman Mihai Anghel’s Cerealcom, which has a 65,000 ton silo in the same town. This will increase competition, as Cerealcom has been the only company that can store large amounts of grain in the area so far.
The investment in Studina, Olt County, where the trader is building two storage facilities with a capacity 12,000 tons is close to the Danube harbor of Corabia, a city where rival Cargill owns a 60,000 ton silo. Other competitors that own silos in the same county are Comcereal Olt (Brise Group), Glencore and Unifex.
The third investment is made near the city of Alexandria, located in one of the most productive counties of Romania, Teleorman, and an important territory for InterAgro group of businessman Ioan Niculae.
Nidera is building two facilities with a capacity of about 23,000 tons. As with the other two investments, the grain will be transported by road.
Alexandria is also where France’s Expur chose to build a storage facility for grain and oilseeds.
Local farmers expect about 16 million to 17 million tons of grain this year, 40% more than last year, which was rather bad. The increase is because of the good weather in 2013.
(English version by Loredana Fratila-Cristescu)