Norofert has finalized the fertilizer production line in the USA

Date:05-28-2024

Norofert, the leader in regenerative agriculture research and one of the largest input producers in Romania, listed on the Bucharest Stock Exchange on the AeRO market (BVB symbol: NRF), announces the completion of the fertilizer production line in the USA. Located in Watertown, South Dakota, one of the most important agricultural areas in the USA, the factory has a production capacity of 8,000 liters/day. The activity will focus on the soil health and foliar nutrition range, similar to that in Romania, and there will be used bacteria produced in the laboratory from Filipestii de Padure.

Vlad Popescu, President of the Board, Norofert:

″We are pleased to announce the completion of the fertilizer production line in the USA and to deliver the first orders for the organic fertilizers produced by Norofert in the USA. We have made an essential step in our growth strategy, with our products meeting the technological standard demanded by the American market. The fertilizers and soil health products are based on microorganisms developed in the laboratory in Romania. The project to enter the American market began in 2020, and since then we have made significant steps, such as homologation and creating a portfolio of products with growth potential in this market, certified field testing, participation in agricultural fairs to present the products, and recently, signing the distribution contract that covers the South Dakota, North Dakota, and Minnesota regions.″

The USA market is a mature market where farmers apply advanced technologies in the field and where climate change has a reduced impact on crops compared to Eastern Europe. The fertilizer production line is fully automated and the company will have a reduced number of employees in the first year of operation. The investment in the production line, amounting to EUR 250 thousand, was carried out through Norofert AG, a subsidiary based in Watertown, South Dakota.

The Norofert AG subsidiary is a company established in March 2024, in which the group holds a majority stake of 51%, and Mr. Gary Lamb, an entrepreneur with over 30 years of experience in the Midwest agribusiness, holds 49% of the shares. The collaboration with Mr. Lamb and the launch of the production line in the USA are the results of a negotiation process and due diligence conducted by the management of Norofert for over a year.

About Norofert:

Norofert is the leader in regenerative agriculture research and one of the largest producers of inputs in Romania, founded in 2000 by the Popescu family. In the midst of expanding the production facilities to support sustainable agricultural practices, internationally, Norofert demonstrates commitment to the goal of climate neutrality and the ability to innovate in an area crucial to the future of agriculture and food security.

With a mix of business lines, Norofert has developed in recent years its production capacities both in the area of inputs and agricultural farming, lines that will see development in the coming years. With 65 products in its portfolio, the company caters to both conventional and organic farmers, with a new niche of liquid conventional products in growing demand.

From 2020 the company is listed on the Bucharest Stock Exchange on the AeRO market and from October 2021 Norofert shares are included in the BETAeRO index. During the 4 years of activity in the capital market, Norofert raised RON 14 million through capital increases and RON 11.5 million through a private placement of corporate bonds. The company’s corporate bonds are traded on the AeRO market of the Bucharest Stock Exchange under the symbol NRF25 starting June 5th, 2020.