Ovostar vests EUR 85 mln in Latvian facility

The Ovostar Union company plans to invest EUR 85 million in the construction of a new egg factory, Dienas Business informs.

Ovostar Union purchased the equipment worth EUR 26 million from the world's leading manufacturer Big Dutchman. In Latvia, Ovostar is represented by the company Gallusman.

“The demand for cage-free raised chickens is growing, and thus Latvia has more opportunities to export these products. According to our calculations, export will reach about 90% of the produced volume of eggs,” said Arnis Veinbergs, Gallusman Board Chairman.

It is noted that the production capacity is planned for 2-6 million laying hens in Madliena Parish. The land area is 140 thou. sq. m. Construction costs exceed  EUR 15 million not including equipment production and construction of cogeneration station. The plant provides for 200 jobs.

As previously reported, Ovostar Union’s EBITDA is expected to fall yoy in 2018, even though in 9M18 the company reported a 42% yoy EBITDA surge. The results imply Ovostar’s 4Q18 revenue reached USD 29.5 mln (down 24% yoy) and its 2018 revenue was USD 124 mln (up 26% yoy).