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De Heus acquires compound feed plant in Serbia

Company cites increasing demand for cattle, poultry and pig feeds in Serbia and greater Balkan region.

On July 4, Royal De Heus announced that it signed an agreement for the acquisition of compound feed plant Komponenta in Serbia.

With the acquisition of this new plant in Cuprija, Serbia, De Heus now has two production locations in Serbia and, thus, has strengthened its leading position, the company said in the announcement.

The demand for high-quality cattle, poultry and pig feeds is increasing rapidly in Serbia. The purchase of this plant will enable De Heus to amply meet this rapid growth in the near future, the announcement said.

De Heus said the Komponenta acquisition confirms the confidence it has in the further development of livestock farming in Serbia and the greater Balkan region. The investment in Komponenta follows an extensive investment program for its factory in Sabac, Serbia. This program focused on modernizing the production process and expanding production capacity by 50%.

De Heus said the new plant will be entirely renovated to meet its high quality standards. For this purpose, the production line will be renewed and equipped with the most advanced production techniques. These adjustments are expected to be completed by the end of 2018, after which the plant will be commissioned.

"In recent years, we have invested a great deal of energy in improving our product quality," De Heus Serbia general manager Darko Sadzak said. "We are pleased that livestock farmers recognize the quality of our feeds. To respond to the increased demand, we will also be further expanding the capacity of the plant in Sabac, together with the modernization of the new plant. The two plants will then have a joint production capacity of 260,000 metric tons.

"The new plant in Cuprija is very favorably situated geographically. This enables us to easily reach livestock farmers in South Serbia, Kosovo, Macedonia and Albania as well," Sadzak added.

Founded in 1911, Royal De Heus has expanded to become one of the largest players in the animal feed industry. With locations in the Netherlands, Vietnam, Brazil, Poland, Czech Republic, Serbia, Spain, Portugal, South Africa, Myanmar and India, as well as joint ventures in Egypt, Ethiopia, Russia and China, the family-owned company has reached a leading position globally.

Additionally, De Heus is active in more than 70 countries through the export of concentrates and premixes, the main ones being Eastern Europe, Africa, the Middle East and South America. Globally, the company employs more than 5,000 people.

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