Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Ueno Shingo) has acquired 100% ownership of Naturevo SRL (Head Office: Bucharest; CEO: Cristina Miculescu; hereinafter, 'Naturevo'), a direct sales company of agricultural inputs in Romania, through Alcedo SRL (Head Office: Bucharest; CEO: Gabriela Rizescu; hereinafter, 'Alcedo'), a wholly owned indirect consolidated subsidiary that operates a direct sales business of agricultural inputs in Romania.

With the global population increasing, the sustainable supply of food has become an important issue, and there is an increasing demand for stable and efficient agricultural production through a stable supply of agricultural materials such as pesticides, seeds, and fertilizers, as well as agricultural management guidance for farmers. Meanwhile, amid concerns about the increased environmental burden caused by increased agricultural production, the Farm to Fork Strategy (Note 1) announced by the European Commission in Europe has set targets for reducing the use of pesticides and chemical fertilizers, and calls for the creation of a sustainable agricultural and food system with a low environmental impact.

Naturevo's Strengths

Naturevo is a direct sales company of agricultural supplies established in 1999 in Romania, one of Europe's leading agricultural powerhouses, with approximately 1,500 customer farmers throughout the country. The company's main product, high-performance fertilizers (Note 2), is a product that makes it possible to reduce the use of chemical fertilizers while maintaining production volume. With environmentally friendly products that meet the needs of farmers and promotional activities by sales staff with specialized knowledge, Naturevo is growing at a rate that exceeds market growth.

Sumitomo Corporation Group's Initiatives in the Agrochemical Sector

Sumitomo Corporation has been involved in the agrochemical-related business for over 40 years, and currently operates the import/export and wholesale of agricultural supplies in approximately 40 countries around the world. In the direct sales business of agricultural supplies, the company acquired Alcedo in 2011 and provides one-stop services from providing technology to farmers to purchasing agricultural products, boasting a high market share in Romania. The company also operates a similar business model in Ukraine, Brazil, Australia and Japan.

the next deployment

Through this acquisition, Alcedo will acquire commercial rights and sales know-how for high-performance fertilizers, for which demand is expected to grow in the future, and will expand its business portfolio. It will also aim to capture a new customer base and increase its market share in the industry. By combining the industry knowledge and network that Alcedo has built with Naturevo's planning, development and sales capabilities, the company aims to achieve further business growth. The

Sumitomo Corporation Group will continue to utilize its global network to expand its geographical business base and expand its products and services, and work to ensure a stable supply of food through sustainable agricultural production.

(C) 2024 Electronic News Publishing, source ENP Newswire