MHP to invest EUR 200 mln in Slovenian Perutnina Ptuj

On 12 November, the agro-industrial holding Myronivsky Hliboproduct (MHP) and the management of the Slovenian company Perutnina Ptuj held a meeting and presented plans for further development within the existing business model.

Dr. John Rich, the non-executive director of MHP, pointed out among the key plans that MHP wanted to invest about EUR 200 million in the next four to five years, mainly in Perutnina Ptuj's production base.

Investments will allow upgrading equipment and technology to the industry's leading level: the renewal, modernization and expansion of live production with breeders and the strengthening of development in accordance with the guidelines for sustainable operation and support to local communities. They will also invest in the development of recognizable brands of Perutnina Ptuj.

"For further development and competitiveness on the demanding global market, Perutnina Ptuj needs a strong strategic partner in the industry, who is ready to strengthen the existing business model, invest in development and technology, and further develop the strong brands of the company," stated Tibor Šimonka, Chairman of the board of Perutnina Ptuj.

Dr. John Rich responded directly to the questions raised by farmers: "We will maintain the already established model of vertical integration, from poultry farming by domestic farmers, to production plants and the sales networks. Our business model is also based on the complete vertical integration of the steps from farm to fork, where nothing is left to chance."

The company is convinced that with the investment in Slovenia, it will be able to increase the sales of Perutnina Ptuj's products in existing markets, such as Slovenia, Serbia, Croatia and Bosnia and Herzegovina, while at the same time the holding will look for new potential opportunities on other, especially Western European markets.

MHP has already acquired the approval of regulators in Austria, Macedonia, Serbia and Romania. Only the confirmation of the Slovenian Competition Protection Agency is being awaited.

Previously it was reported that MHP had been authorized by the Commission for the Protection of Competition of the Republic of Serbia for the purchase of 90.69% of the shares of Perutnina Ptuj.