November 15 (SeeNews) - Moldovan agricultural commodities trader and sunflower oil producer Trans-Oil Group has invested $6 million (5.56 million euro) in a new silo at its grain handling terminal in Danubian port of Giurgiulesti, aiming to double its export capacity, the European Bank for Reconstruction and Development (EBRD) said on Tuesday.
"With an investment of US$ 6 million, where 75% was covered from the EBRD funds, the company has built an additional berth on the river, a silo with 12,000 tonnes storage capacity and a brand new deep water jetty. It has also installed high-capacity loading equipment," the EBRD said.
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The investment was financed from a $25 million loan provided in 2014 by the EBRD, which the company is using to boost its business in Moldova and Ukraine.
The newly expanded facility now has a total grain storage capacity of 70,000 tonnes will help increase Trans Oil's grain export capacity at the grain handling terminal to 1,000,000 tonnes from 450,000 tonnes. Also, it will contribute to the increase of the transhipment capacity from 300,000 tonnes to 800,000 tonnes annually, which is equivalent to about 75% of Moldova’s annual grain exports, the lender added.
The new silo will enable Trans-Oil Group to meet growing demand for storage and drying services from independent Moldovan farmers and exporters in Giurgiulesti, EBRD added.
“Due to the substantial increase in our capacity we will be able to attract new clients and at the same time enable our group of companies and our existing clients to increase the transhipment volumes. We have also created 30 new jobs,” president of Trans Oil Group, Vaja Jhashi said.
Trans-Oil Group covers the full agricultural value chain from farming, grain handling, storage and trading to wheat flour production, oilseed crushing and oil bottling. It exports to the EU, North Africa and the Middle East.
The company uses Giurgiulesti, Moldova’s only port, as its main grain terminal.
The EBRD has provided loans to Trans-Oil Group in 2004, 2009, 2013 and 2014 to finance acquisitions or the purchase of agricultural commodities as well as the construction of a sunflower seed crushing plant in Ceadir Lunga.
The EBRD is the largest institutional investor in Moldova with over 1.1 billion euro of cumulative investment in over 110 projects in agribusiness, energy, the financial sector, infrastructure and manufacturing.
($ = 0.9269 euro)