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News 821 views last update:14 Jan 2016

Eurodon may aquire production facilities of Optifood

Announced at a press conference, Eurodon plans to acquire manufacturing facilities of recently bankrupted company Optifood, said the Russian head of Ministry of Agriculture (Rostov region) Vyacheslav Vasilenko.

According to the minister, the owner of Eurodon Vadim Vannev is negotiating for assets of Optifood with Russian Agriculture Bank (Rosselkhozbank).

"We are talking about debt re-structuring for a period of at least 15 years. The price tag is RUB 6.7 bln (US$ 220 mln). And, perhaps most importantly we will have working capital necessary to restart the production process" said Vasilenko. He added that the question of how it will be built with the co-operation between Rosselkhozbank and Eurodon will soon be resolved.

According to Vasilenko, the purchasing of the production facilities is very interesting for Eurodon because of the opportunity to create a complete assortment of poultry products for the trading networks. The company produces turkey meat, and in September last year launched the first platform of the future complex for the industrial cultivation and processing of duck meat.

Optifood in Rostov region has a number of production facilities for the total production of 100,000 tonnes of chicken meat per year. Optifood also own in Kalitvinsky and Semikarakorsk meat processing plants. In 2010, Optifood produced in the Rostov region almost 60,000 of poultry meat. In 2011, the production volume was increased to 84,000 tonnes, but in 2012 due to lack of working capital the volume of production fell to 60,000 tonnes. Optifood are now operating the bankruptcy administration. All production facilities are temporarily closed.

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