BayWa AG, DE0005194062

BayWa AG, DE0005194062

07.03.2017 - 08:51:45

Premium veggies and fruit abound with a fresh UAE basket - Germany's BayWa and Al Dahra expand their value chain with EUR30 million agribusiness in Abu Dhabi

Premium veggies and fruit abound with a fresh UAE basketGermany's BayWa and Al Dahra expand their value chain with EUR30 million agribusiness in Abu Dhabi Munich/Abu Dhabi, March 07, 2017 - The German-based BayWa AG, with agriculture as one of its core businesses, has tied up with the Abu Dhabi-based Al Dahra Holding LLC, a leading international agribusiness company, to set up a ground-breaking project in the UAE.

BayWa AG and Al Dahra Holding LLC today unveiled the EUR30 million project. The new entity, Al Dahra BayWa LLC, will operate in the production of premium vegetables like tomatoes using latest greenhouse technologies as well as in the marketing of the produce in the seven-emirate federation, and potential regional markets. This contract is subject to approval by the competent authorities in the UAE.

Spending power in the UAE on fruit and vegetables from regional and sustainable production is strong and the country has a healthy market for premium fruits and vegetables. Al Dahra BayWa LLC will have its headquarters in the UAE capital, Abu Dhabi.

Commenting on the new company, HE Khadim Abdulla Al Derei, Vice Chairman & Managing Director of Al Dahra Holding LLC, said: "We are pleased to make this announcement which comes as part of the strategy of food security in the UAE and contributes to consolidating our initiatives in that direction".

"Al Dahra BayWa LLC has a great potential for growth in the region, and we are confident that this collaboration has the elements of success in this continuously growing business segment", he added.

The joint venture is part of the specialties strategy in BayWa's Agriculture Segment. "Through our trade network, we have identified the United Arab Emirates as a very profitable market with a large growth potential", explained Klaus Josef Lutz, the Chief Executive Officer of BayWa AG. "On an international scale, we are observing a growing interest to close the value chains between from growers to consumers - this development is reflected in our decision-making." Mr. Lutz emphazised that BayWa does not refer to standard products like wheat, corn and soy when talking about the expansion of its value chain, but instead focuses exclusively on special products for a profitable market segment in regions with strong growth in order to diversify its agricultural business.

The climate-controlled greenhouse will be constructed on a site with an area of 15 hectares. In a first step, the venture will produce up to 5,000 tons of premium tomatoes per year to be marketed to local food retailers. In the controlled climate of the facilities, vegetables can be harvested throughout the year. Water-efficient technologies will be used, and compared to traditional greenhouses, the system will save 60 percent of water used for irrigation.

Ends

About BayWa AG Founded in 1923, BayWa AG is an international group with worldwide operations. Its core fields of business are trade, logistics and additional services in the core segments agriculture, energy and construction. International activities are focused on Europe as well as the United States and New Zealand. In the financial year 2016, the group's overall revenues amounted to over 15 billion euros. With 60%, the Agriculture Segment with trade and other services for the agriculture and food industry has the largest share in the group's revenues. The group plays a significant role in the fruit trading field. BayWa is the largest single marketer of dessert pome fruit in the German food retail sector. After the acquisition of T&G Global Limited from New Zealand as well as the Dutch company TFC, vendor of exotic fruit and vegetable specialties, the group has operations on all continents.

About Al Dahra Holding LCCAl Dahra Holding is a prominent leader in the agribusiness sector, specializing in the cultivation, production and trading of animal feed and essential human food commodities. Al Dahra has made considerable investments in the production, packaging and marketing of grains. With a stake in Kohinoor Foods, a leading rice producer in India and a fully owned subsidiary in Pakistan, Al Dahra is a key player in the rice supply and trading business with four rice mills and about a 400,000-ton annual production capacity. In addition, Al Dahra is a shareholder in Loulis Mills, an expert in wheat milling and flour production based in Greece, producing more than 200,000 tons of flour annually. As part of its fruits and vegetables offering, Al Dahra cultivates wheat, potatoes, corn and various citrus fruits in Egypt in addition to olives in Morocco. Al Dahra has also entered into partnership with Rudnap group for apples cultivation in Serbia and with Albert Bartlett group based in the United Kingdom for the cultivation of potatoes.

Moreover, Al Dahra is focused on diversifying its investment strategy and has made strong alliances and partnerships within the logistics and supply chain sector and the Chemicals sector.

Note: Printable press photos, footage material and video statements can be downloaded - without registering - from the BayWa media pool at https://www.baywa-mediapool.com/.

You can find us on twitter at www.twitter.com/BayWaPresse.

For more information, please contact: Thomas Berger, BayWa AG, PR/Corporate Communications/Public Affairs, Phone 0049 (0) 89/92 22-36 92, Fax 0049 (0) 89/92 12-36 98 E-mail: thomas.berger@baywa.de

Aisha Alafifi Special Projects Director Al Dahra Holding LLC Phone +971 2 656 5000

Contact:Marion Danneboom, BayWa AG, Head of PR/Corporate Communications/Public Relations, tel. +49 (0)89/92 22-36 80, Fax +49 (0)89/92 22-36 98, e-mail: marion.danneboom@baywa.de

07.03.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language: English

Company: BayWa AG Arabellastraße 4 81925 München

Germany Phone: 089/ 9222-3691 Fax: 089/ 9222-3698 E-mail: marion.danneboom@baywa.de Internet: www.baywa.de ISIN: DE0005194062, DE0005194005, WKN: 519406, 519400, Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange   End of News DGAP News Service

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