Chinese Agrigroup Mulls EUR 100M Investment in BulgariaBusiness | November 13, 2014, Thursday // 12:36| views
A major Chinese agribusiness company intends to invest EUR 100M in the construction of an industrial park for processing agricultural produce in Bulgaria, InvestBulgaria Agency (IBA) has announced.
The investment intention of Tianjin State Farms Agribusiness Group has already been endorsed by Tianjin Municipal People's Government, the Bulgarian government promotion agency said in a statement summarizing presentations of investment opoportunities it made to potential Chinese investors in Beijing and Shanghai last week.
The idea of Tianjin State Farms Agribusiness Group is to attract another fiveChinese companies to invest in the construction of new facilities for processing of agricultural production.
In 2011, the Chinese agribusiness company rented about 2,000 hectares of land in northwestern Bulgaria, one of the poorest EU regions, to grow maize, alfalfa and sunflower for export to China. The Asian giant is at the forefront of agricultural investments in overseas farmland as it struggles to feed its growing population due to a shortage of suitable land and water resources at home.
"Investment in production in Bulgaria allow Chinese companies free access to the European market, thus significantly saving duties, taxes and operating costs," IBA Deputy Executive Director Kostadin Djatev said in the statement.
In addition to providing Chinese companies with access to the EU market Bulgaria can serve as a bridge to the markets of Turkey, Russia, Ukraine and countries in Middle East, Djatev said.
Tianjin State Farms Agribusiness Group is active in the production and distribution of milk, dairy products and fruit juices. It also engages in wine production, fish farming, turf farming, and property development.
IBA is a government organization established to attract investment to Bulgaria, assist project set-up and ensure successful project development.
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