RDF Arad has made investments of 5.7 million Euro in the agribusiness field

RDF Arad, one of the most important regional players in agribusiness, marks the completion of investments worth 5.7 million Euro which include:

1. An investment worth 3 million Euro in the RDF headquarters in Sofronea, Arad County with the aim of increasing the company’s storage capacity from 10,000 to 22,000 tons. At the same time, RDF purchased new laboratory equipment and facilities for seed selection and treatment, as well as a soybean extrusion plant. Moreover, the investment involved the change of the entire infrastructure owned by changing the sewerage system, the replacement of over 12,000 sqm of concrete platforms and the complete renovation of the storage spaces and the entire headquarters of the company.

2. An investment worth 1.3 million euros in the acquisition of a storage base in Ineu, Arad County, with a grain storage capacity of 20,000 tons, and for the implementation of the Dynamics Navision management system.

3. Investments of 1.4 million euros to complete the park with new, modern agricultural equipment for land use.

“Investments are part of our strategy to increase the grain trade, to develop the seed production branch and to diversify our business lines. Through these investments we have managed to increase the storage capacity from 10,000 to 42,000 tons and the number of seeds produced, and last but not least, to reduce costs. Moreover, by purchasing the soybean extrudate factory, we became one of the few soybean processors in Romania. Investments in equipment allow us to work three times larger areas of agricultural land, and the investment in Ineu has helped us increase the quantities of grain we trade, going to support farmers in the area, where storage spaces are insufficient,” said Florin Deznan, CEO of RDF Arad.

The investments were made through a project of European funds, through which 50 percent of the investment came from AFIR and 50 percent from the bank loan. The investments in the Ineu base and in the agricultural equipment were made with the help of a bank loan and leasing.

In 2020, the RDF team increased its business by 65 percent ​​and reached an operating profit (EBITDA) of 4.3 million RON. In 2021 RDF estimates an increase of about 20 percent in turnover and an increase in EBIDTA by about 50 percent compared to 2020. RDF has also increased the cultivated agricultural land areas from 600 ha in 2019 to 2000 ha in 2021.