Romania's Norofert signs first distribution contract in U.S.

The distributor is based in Watertown, South Dakota, Norofert said in a filing to the Bucharest Stock Exchange.

The distribution deal covers the states of South Dakota, North Dakota, and Minnesota. The value of the deal was not disclosed.

"In order to focus our resources and efforts effectively, we decided to focus on working with a distributor specializing in our product area in the Midwest region. Under this contract we will cover three agriculturally important states, committing to provide demonstration lots for the promotion of our products as well as technical expertise," Norofert board president Vlad Popescu said in the filing.

Norofert started working towards expanding in the U.S. in 2020, when it homologated a range of products, creating a portfolio with growth potential in that market.

Last month, Norofert announced it was investing 250,000 euro ($270,689) in a production line for soil health and foliar nutrition products in the state of South Dakota. As part of this expansion drive, the company established Norofert AG in Watertown, with a stake of 51% held by Norofert, and the remainder owned by Gary Lamb, an experienced entrepreneur in Midwest agribusiness. The construction of the production line is scheduled to start in April.

Established in 2000, Norofert is the main producer of organic fertilisers in Romania. It has three business lines: production of inputs for organic and conventional agriculture, organic farming and grain trading.

Norofert shares traded 7.96% higher at 4.34 lei ($0.95/0.87 euro) as at 1101 CET on Tuesday on the Bucharest bourse.

($=0.9236 euro)