The Czech holding company Agrofert is in talks with the government of the German state of Saxony-Anhalt regarding possible financial support for extensive investments in the city of Wittenberg. The group plans to invest a total of 120 million euros (approximately 3 billion Czech crowns) in two industrial plants. This was reported by the German public broadcaster MDR.

According to Petr Cingr, Deputy Chairman of the Agrofert Board, the group's long-term goal is to integrate agriculture, fertilizer production, and the food industry into a single, functional chain. "We are trying to integrate farmers, fertilizer manufacturers, and food producers into a single value chain. This was also the reason why we decided to acquire the company Lieken," Cingr said in an interview with the MDR television program Umschau.

70 Million Euros for the Lieken Bakery

The German bakery Lieken, which is part of Agrofert and was acquired in 2013, has been located in Wittenberg for eight years. The company produces the well-known Golden Toast bread, muffins, and other baked goods.

According to Jennifer Staatsová, the plant manager, the company plans to invest 70 million euros in a new production line for frozen pretzel snacks with cheese. Construction work is scheduled to begin in late May or early June, with the first equipment to be installed in the fall. Full operation of the new line is planned for the end of next year.

An Additional 50 Million Euros for SKW Piesteritz

Agrofert plans to invest the remaining 50 million euros in the chemical plant SKW Piesteritz, which is the largest producer of ammonia in Germany. Ammonia is used to produce urea, a basic raw material for fertilizer production.

The company employs approximately 2,500 people, and according to its managing director, Carsten Franzke, it indirectly supports up to 10,000 jobs in the region.

The investments are primarily aimed at increasing energy efficiency and strengthening the plant's competitiveness. SKW Piesteritz has faced high natural gas costs in recent years, which account for approximately 80 percent of production costs.

The Energy Crisis Has Severely Impacted the Chemical Industry

According to the management of SKW Piesteritz, the balance between energy prices and market prices for finished products has been significantly disrupted in recent years. This has led to significant losses throughout the industry.

Petr Cingr stated that Agrofert has had successful negotiations with the German federal government, which has adjusted the so-called gas storage levy. Thanks to this change, the company is expected to save approximately 40 million euros annually.

Negotiations with Politicians Continue

The Minister-President of Saxony-Anhalt, Sven Schulze, described the planned investments as an important signal of confidence in the region. According to him, this is confirmation that the location has prospects for the next decades.

In March, Schulze visited Prague, where he met with the Czech Prime Minister, Andrej Babiš, and representatives of Agrofert. He left the meeting with the assurance that the holding company intends to continue operating in Saxony-Anhalt, but also emphasized the need to discuss appropriate conditions for further development.

According to Schulze, many key investment decisions regarding the economy of Saxony-Anhalt are made in Prague.

gnews.cz - GH