AGRAVIS takes over majority of RWZ feedstuff plants
AGRAVIS Raiffeisen AG will take over the majority of the feedstuff activities of RWZ Rhein-Main eG (RWZ) on 1 July 2017, as scheduled. The two RWZ plants in Wiesbaden and Neuss will go to the AGRAVIS Group as planned. AGRAVIS will then bundle the production and sales know-how in two companies – AGRAVIS Futtermittel Rhein-Main GmbH and AGRAVIS Kraftfutterwerke Rhein-Main GmbH. All employees will be kept on.
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“We are glad that the Federal Cartel Office has given the green light, the contracts are now signed and we can start the operational implementation on 1 July as planned," says AGRAVIS CEO Andreas Rickmers. As he is keen to stress, the Animals segment, and therefore the production and sale of compound feed, represents for him the core competence of AGRAVIS. The AGRAVIS Group produces around 4.5 million tons of compound feed per year in over 30 of its own compound feed plants and affiliated companies.
“We are highly experienced in this business. However, we believe that the demand for feedstuff in Germany has reached its peak. On the basis of current discussions, no further market growth is expected. Consequently, there will be cut-throat competition in this sector in the next few years. We have prepared for this – by using cooperation models with cooperatives on the one hand, and a growth strategy that extends beyond our core area of operation on the other. Our cooperation with RWZ Rhein-Main eG should be regarded as part of this strategy. We get the know-how, and the customer gets a reliable feedstuff producer and a good trading partner," Rickmers explains.
For Christoph Kempkes, CEO of RWZ, the new cooperation is a win-win situation: "With this cooperation, we can combine our strengths and at the same time focus on our strong regional sales while retaining the RWZ feedstuff brands which have been so expertly developed. This means we create better solutions for all concerned." He goes on to explain that, in these new conditions, the broader product ranges and greater overall strength of the AGRAVIS production alliance offer tangible long-term benefits for farmers.
RWZ will in future own a 25 percent share of the production company AGRAVIS Kraftfutterwerke Rhein-Main GmbH, with the remaining 75 percent held by AGRAVIS, which in addition also fully owns the sales company AGRAVIS Futtermittel Rhein-Main GmbH.
AGRAVIS Kraftfutterwerke Rhein-Main GmbH will in future be run by Torsten Vollweiter and Peter Kubosch. The managing directors in charge of AGRAVIS Futtermittel Rhein-Main GmbH are Andreas Bußmann-Dopp, Dr Wilhelm Schulte-Beckhausen and Fried Flocke.