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EBRD and Eridania Béghin-Say invest in Polish oilseed processing company
To assist with the upgrading of ZT Kruszwica S.A., the largest oilseed processor in Poland, the European Bank for Reconstruction and Development (EBRD) is investing US$ 18.5 million (ECU 17.2 million) alongside Eridania Béghin-Say, one of the largest agro-industrial companies in the world. The funds will enable ZT Kruszwica to continue the process of privatisation, modernise its equipment and reinforce its competitive position in Poland.
"With one-quarter of the population working in agriculture, the agribusiness sector is of greater importance in Poland than in most western and indeed in many other eastern European economies," said Charles Frank, First Vice President of the EBRD. "Structural changes and privatisation in the agribusiness sector are therefore particularly sensitive. The project will improve both the quality and regularity of raw material supplies, and will encourage the local industry to improve production standards thereby increasing competitiveness and consumer choice in the run-up to EU accession."
"Eridania Béghin-Say already has successful experience in central and eastern Europe, but without a financial partner," said Ross McInnes, Finance Director of Eridania Béghin-Say. "This represents a significant change: we see the EBRD as a long-term partner, who can provide not only financial resources but also a track record in the country and a proven ability to work with local authorities and local banks."
As well as being the largest Polish oil processor, ZT Kruszwica ranks among the three market leaders in vegetable oils and fats. A vertically integrated company, Kruszwica began its operations in 1956 and was transformed into a joint-stock company in December 1995. On 22 July 1997 Eridania Béghin-Say finalised the acquisition of 45.8 per cent of the existing shares of ZT Kruszwica. The EBRD's equity stake will be used to finance an additional capital increase in ZT Kruszwica.
Based in France, Eridania Béghin-Say is a major worldwide processor of the principal agricultural raw materials (cereals, oilseeds, sugar beet) into ingredients for food, feed and non-food uses. The group is also a leader in the consumer products sector. In 1996, Eridania Béghin-Say achieved a turnover of FRF 55 billion. It is quoted on the Paris and Milan stock exchanges and has Montedison, a company active largely in the agro-industrial sector, as a majority shareholder (50.4 per cent).
As at 31 October 1997, the EBRD had approved a cumulative total of 70 projects in Poland, to a value of ECU 1.3 billion.
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