Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) announced that it has acquired Naturevo S.R.L. (Head Office: Bucharest, CEO: Cristina Miculescu, "Naturevo"), a Romanian distributor of agricultural inputs, via Alcedo S.R.L. (Head Office: Bucharest; CEO: Gabriela Rizescu; hereinafter, "Alcedo"), a wholly owned indirectly consolidated subsidiary also engaged in the distribution of agricultural inputs in Romania.

As the global population increases, sustainable food supply has become an important issue. There is growing demand for stable, efficient agricultural production dependent on agricultural material supplies including agrochemicals, seeds and fertilizers, as well as guidance for farmers on proper farm management. Meanwhile, amid concerns over the environmental burden caused by increased crop production, the European Commission's Farm to Fork Strategy has set targets for reducing the use of pesticides and chemical fertilizers, calling for the establishment of a sustainable agricultural and food system with minimal environmental impact.

Naturevo’s Strengths

Naturevo is a distributor of agricultural inputs established in 1999 in Romania, one of the top agricultural countries in Europe, with approximately 1,500 farmers throughout the country. The company's core product, high-performance fertilizers, reduces the use of chemical fertilizers while maintaining production output. Naturevo is growing faster than the market thanks to products that are both environmentally friendly and meet the needs of farmers, and due to promotional activities undertaken by its expertly trained sales staff.

Sumitomo Corporation Group Initiatives in the Agricultural Chemicals Sector

The Sumitomo Corporation Group has been engaged in agrochemical-related businesses for more than 40 years and is currently involved in the import, export and distribution of agricultural materials in around 40 countries worldwide. In 2011, Sumitomo Corporation acquired Alcedo, a major distributor of agricultural materials in Romania to launch a multifaceted crop production support business that offers a one-stop service not only for crop protection technology but for all materials necessary for crops and crop procurement. Sumitomo Corporation Group also operates similar business models in Ukraine, Brazil, Australia and Japan.

Moving Forward

Through this acquisition, Alcedo will acquire the commercial rights and sales expertise for high-performance fertilizers – demand for which is expected to grow – thereby expanding its business portfolio. In addition, the company aims to increase its market share in the industry by tapping into a new customer base. By combining Alcedo's industry knowledge and network with Naturevo's planning, development and sales capabilities, the two companies aim to pursue further growth.

The Sumitomo Corporation Group will continue to pursue expansion of its geographical business base and enhanced products and services through its global network, working toward stable food supplies through sustainable agricultural production.

Note: The content of this press release has not been edited by Fibre2Fashion staff.

Fibre2Fashion News Desk (HU)