Royal Greenland enters into joint venture with Russian customer Agama

Through the construction of a new packaging facility just outside of Moscow in cooperation with the distributor Agama, Royal Greenland seeks to strengthen position in the Russian market, reports www.megafishnet.com with reference to Royal Greenland.

The facility will cook and pack shell-on cold water prawns for the growing Russian market and is expected to commence operations on September 1st 2010.
Joint venture

The facility will be built in cooperation with the Agama Group, a large player within the frozen foods market in Russia in both retail and food service and will package products for both companies as well as external operators if capacity allows. Royal Greenland will supply the raw material and Agama will be in charge of distribution. Due to Royal Greenland's great experience within the area, we will be responsible for the procurement and installation of processing equipment and subsequently also for future operations. Agama will contribute with local storage facilities as well as the refurbishment of an existing cool store.

At Royal Greenland, they expect that this joint venture will reinforce company's position in the Russian market and create growth and development for our operations in Eastern Europe in general.