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EBRD and Soufflet help to nurture grain and flour industry in central and eastern Europe and CIS
To support the growth of the grain and flour industry in central and eastern Europe and the Commonwealth of Independent States (CIS), the European Bank for Reconstruction and Development (EBRD) is providing a US$ 50 million (ECU 44 million) multi-project facility (MPF) to Groupe Soufflet (Soufflet). The funding will be used to finance its investment programme in the region.
Hans Christian Jacobsen, Director of the EBRD’s Agribusiness team, said: "By supporting the investment programme of a leading grain processing company such as Groupe Soufflet, the EBRD’s facility will help to introduce new quality standards and develop local production. The project will have benefits throughout the food chain, from farmers to agro-industries and, ultimately, to consumers."
Michel Soufflet, President of Groupe Soufflet, added: "Development of our investments in central and eastern European countries and the CIS is one of our major objectives for the next few years. We will expand our traditional activities, such as farm procurement, and the collection and processing of grain products."
The project is expected to expand Soufflet’s production capacity and further develop its sales to bread and beer producers in the region. It will also assist in improving raw material to allow local procurement for Soufflet’s processing operations.
Soufflet’s investment programme in the region envisages four to seven projects over the next four years, representing an approximate aggregate value of US$ 150 million (ECU 132 million). The Bank’s maximum involvement thus represents 33 per cent of financing requirements. Under the MPF, a large number of sub-projects will be financed in accordance with principles jointly agreed at the outset. The first project will consist of a ECU 14 million loan to a Russian malting facility in St Petersburg.
Created in 1900, the French Groupe Soufflet is a leading company in western European agribusiness and is owned by Michel Soufflet. It is one of the largest purchasers of French grain and exports products throughout the European Union and to Asia, Africa and Latin America. Soufflet employs approximately 2,400 people and operates processing and storage facilities in Belgium, France, Italy, the Netherlands, Spain and the United Kingdom.
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