KSG Agro to start pellet production for Poland
18 January 2012
KSG Agro (KSG PW) signed a letter of intent to supply straw pellets to Poland, the company reported on Tuesday. KSG Agro plans to construct an agricultural pellet production plant with annual capacity of 60,000-90,000 t; production at the facility should commence already in 2012.
Yegor Samusenko: Agricultural pellets are in high demand in the EU due to a requirement for power generating facilities to partially use alternative fuels. Though KSG Agro provided few details on its new project, we are sure it will be value-accretive for the company. If realized, we estimate the new plant would add up to USD 10 mln annualized to KSG’s revenue and up to USD 5 mln to EBITDA when the facility is operating at full capacity.
