Business Forum • 19 March, 2024 at 11:01 AM
Norofert, the leader in regenerative agriculture research and one of the largest input producers in Romania, listed on the Bucharest Stock Exchange on the AeRO market, announces the start of a production line for inputs and an investment of €250,000 in one of the most important agricultural area in the USA. Production will focus on the range of soil health and foliar nutrition, similar to the one from Romania, and it will be used bacteria produced in the laboratory in Filipestii de Padure.
The investment will be carried out through Norofert AG, based in Watertown, South Dakota, in partnership with Gary Lamb, an entrepreneur with over 30 years of experience in Midwest agribusiness, with extensive knowledge of the market and farmers in the area.
"For Norofert, geographical dispersion represents a primary objective. The technology and formulas of our products allow us access to competitive markets, and entering the US market, although delayed due to the pandemic, is an example in this regard. It is a mature market where farmers apply advanced field technologies and where climate change does not have the same negative impact as in Eastern Europe. The feasibility of the project is even greater as we benefit from the results of production and research of the microorganism multiplication laboratory in Romania, which will export concentrated strains of bacteria for use in production in the USA," said Vlad Popescu, President of the Board, Norofert.
The project to access the US market began in 2020, and since then, significant steps have been taken, such as the approval of a range of products, certified field testing, and the creation of a product portfolio with growth potential in the American market. Over time, the company's management has explored various market entry routes, including participation in agricultural fairs as well as discussions with local representatives and distributors. Ultimately, attracting a local partner represents the strategic decision through which Norofert can reduce its operational risks and which will also generate the most benefits for the company's shareholders.
Thus, the company initially created, Norofert USA LLC, currently fully owned by Norofert S.A., has established a new subsidiary, Norofert AG, in which the group holds the majority stake of 51%, with Gary Lamb holding 49%. Additionally, the headquarters of the US representation has been relocated to the state of Delaware for tax reasons. Gary Lamb will manage the activities of the new entity from South Dakota, overseeing sales, territorial expansion, and company administration. The assembly of the production line in the American market and the collaboration with Gary Lamb result from a negotiation and due diligence process of over a year.
Norofert's products meet the technological standards required by markets such as the one in the USA. The production line will be located in a rented space, and the automations to be implemented will allow the company to maintain a small number of employees, specifically 2, for the first year. At this moment, there are pre-orders for the bacterial fertilizers to be produced in the new factory. The start of construction for the production line is scheduled for the first week of April.
Norofert is the leader in regenerative agriculture research and one of the largest producers of inputs in Romania, founded in 2000 by the Popescu family. In the midst of expanding the production facilities to support sustainable agricultural practices, internationally, Norofert demonstrates commitment to the goal of climate neutrality and the ability to innovate in an area crucial to the future of agriculture and food security. From 2020 the company is listed on the Bucharest Stock Exchange on the AeRO market and from October 2021 Norofert shares are included in the BETAeRO index. During the 4 years of activity in the capital market, Norofert raised RON 14 million through capital increases and RON 11.5 million through a private placement of corporate bonds.