Ovostar Union invests EUR 100 mln in egg production complex in Latvia

Gallusman, a subsidiary of Ovostar Union, is considering partnering with the energy company ADVEN in an investment project to build a modern egg production complex in Latvia, Latifundist.com was informed by the company's officials.

The project implementation will generate EUR 100 mln of investments and 200 new jobs for the Latvian economy.

The new production complex will export up to 90% of its output, the company says. Export sales will be handled by another Latvian subsidiary of Ovostar Union, Ovostar Europe, which since 2015 has been cooperating with the company's trade partners in the EU countries.

"Ovostar Union's aims at entering new markets in Europe and the Middle East. The project is currently at the stage of assessing the potential environmental impact. The expertise should be completed by the end of this year, and the start of construction works is scheduled for 2021," the company says in a statement.

It is noted that cooperation will enable companies to focus on their core activities.

"We are discussing the possibility of partnership with ADVEN, as they offer simple and comprehensive solutions for business. By involving such a strategic partner as ADVEN in the project, we will be able to fully focus on our core business", says Arnis Veinbergs, co-owner and head of the Board of Directors of Gallusman.

The companies' partnership is focused on finding optimal energy and infrastructure solutions for the egg production complex. All this makes it possible to create environmentally safe and economically profitable production, the parties stress.

"The new egg production facility will be efficient and environmentally friendly. All waste will be utilized to reduce potential negative impact. Waste-free production will lead to a reduction in CO₂ emissions, which is positive both from environmental and economic point of view," said Kristaps Greidāns, business developer at ADVEN Group.

Esko Aho, Head of the Board of ADVEN Group, noted that projects of this scale are significant not only for Latvia, but also for the entire Northern Europe.

Gallusman and ADVEN have already signed an agreement of intent. Upon completion of the project, Gallusman will become the leader in poultry farming and animal feed trade in Latvia, as well as the largest producer of eggs and egg products in Northern Europe.

Previously reported that Ovostar Union reported a net loss of USD 20 mln in 2019, compared to a net profit of USD 17.5 mln in 2018.