News Business takeover
De Heus sees opportunities in Eastern Europe
De Heus took a majority stake in Ukrainian D-Mix on Monday, March 4. However, the joint venture continues under the name: Koudijs Ukraine. In this way, De Heus hopes to respond to the growing livestock and livestock farming in Ukraine.
The Ukrainian company mainly specializes in feed for poultry and pigs and produces approximately 80.000 tons of feed per year. In addition, 50.000 tons of soy and sunflower seed are 'crushed', but this is not where the ceiling lies. There will be a new premix factory built, which should be operational by 2020. This investment should boost production by another 30.000 tons.
First investment in Ukraine
With the acquisition, De Heus wants to strengthen its competitive position in areas where the animal feed market will develop strongly in the coming years. The Ukrainian government has been investing in the sector for years and livestock farming is expected to grow strongly. That is why De Heus has chosen to invest in Ukraine; it is the first time that the animal feed company invests in Ukraine.
De Heus has 6.000 employees, 600 of whom are in the Netherlands. The rest are active in more than 70 different countries. The acquisition will add more than 300 employees. The total production of De Heus will increase from 7,5 million tons to 7,6 million tons as a result of this joint venture.
Board stays put
The D-Mix working method will be continued with the current board. It is not known how much De Heus has invested. The feed company does not make any statements about the size of the interest either.
Tim Roetman
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
