Toros Agri acquires 70% stake in organic fertiliser manufacturer Gönen Renewable Energy Production, Inc.

Toros Agri, Turkey's largest producer of fertiliser and the leader in this sector, has added organic fertiliser to its product portfolio-a move made in accordance with the company's aim of supplying farmers with every type of fertiliser they need. By acquiring a 70% stake in Gönen Renewable Energy Production, Inc., a company that produces biogas and organic fertiliser, Toros Agri intends to become a major player in the markets of organic and organomineral fertilisers, a sector whose market potential is expected to increase in response to changing agricultural policies.

In 2016, the Gönen Integrated Facilities, which produces renewable energy and organic fertiliser by means of biogas and fertiliser integration, was voted the best in the world in its field by ADBA (the Anaerobic Digestion and Bioresources Association), a UK-based organisation. With the completion of ongoing and soon-to-be-completed additional investments, organomineral fertiliser production will also get under way at the Gönen plant. Thus Toros Agri will be able to increase its capacity in the organomineral market (which it entered two years ago) while at the same time adding organic fertiliser to its product portfolio and enabling it to meet the changing needs of farmers.

The agreement covering the acquisition by Toros Agri of a 70% stake in Gönen Renewable Energy Production, Inc., was signed at Toros Agri HQ in Tekfen Tower by Tekfen Holding Chairman Murat Gigin, Tekfen Holding Vice President/Agri-Industry Group and Toros Agri Chairman Hakan Göral, Altaca Holding Chairman Alper Önoğlu and Altaca Energy Chairman Taner Önoğlu on 13 May. The transfer of shares is to take place following approval of the sale by the EPDK (the Energy Market Regulatory Authority). Speaking at the signing ceremony, Tekfen Holding Chairman Murat Gigin said that Toros Agri is strengthening its position as a leader in the fertiliser sector by broadening the range of products and that the company is constantly expanding its portfolio to meet the changing needs of farmers. Pointing out that fertiliser is one of the most important elements in ensuring a sustainable future for the foodstuffs sector, Gigin said that the organic matter content of Turkey's arable land is decreasing day by day, and that is why Toros Agri added organomineral fertilisers to its portfolio two years ago in order to fill this deficiency. He also stated that the company saw its decision of engaging in organic fertiliser production not just as an investment in a developing market, but also as a contribution to the sustainability of Turkey's agriculture. Gigin went on to say that electricity production at Gönen Integrated Facilities would be a supplement to the existing 37.4 MW produced by Tekfen's facilities in Samsun and Mersin, and thanks to production at Gönen, the Group's carbon footprint would be reduced by 70,000 tons per annum.

Also speaking at the ceremony, Toros Agri Chairman Hakan Göral drew attention to the importance of assuring the security of raw materials in the fertiliser sector and stated that incorporation of Gönen Energy into the company will make it possible for Toros Agri to forge ahead in the field of organomineral fertiliser. "Organomineral fertilisers' market is one of the areas in which we wish to grow. This investment will both enhance our factories' expertise on product basis and increase our ability to compete in the market. During the forthcoming period, broadening the range of products we can offer will continue to be one of our priorities" he said.

For his part, Alper Önoğlu, founding partner in Gönen Renewable Energy Production, Inc., said that since its foundation, the company's aim was to develop environmentally-friendly and sustainable production facilities both in terms of the production model and the products themselves. He also stated that thanks to the R&D studies carried out at Altaca Energy since 2009, they had succeeded in setting up a model plant using fully domestic technology they had developed. Önoğlu also commented that joining Toros Agri -Turkey's leading company in the fertiliser sector with its high standards of quality, organisational structure and the values it espouses- was fully in accord with his company's aims and vision. In conclusion, he said that the decision to join forces would enable significant developments to take place for both companies in the future.

About Gönen Energy...

Gönen Renewable Energy, Inc., a company whose production facility is located in Gönen (Province of Balıkesir), was founded in 2011 by two brothers named Alper and Taner Önoğlu in order to produce electricity, synthetic fuel, humic acid and organic fertiliser from biogas. All the raw materials used in the plant are obtained from cattle and chicken farms, agricultural operations and food factories in the immediate area. Zero liquid discharge, advanced flue gas purification and a heat recovery system combine to ensure that the Gönen facility respects the environment in every possible way. In addition to the economic value generated by the electrical energy and organic fertiliser it produces, the plant eliminates 400 tons of organic waste per day, thus reducing emissions by the equivalent of 70,000 tons of carbon dioxide per year; Gönen Energy therefore performs a highly effective role in the resolution of the area's environmental pollution issues. The facility currently has an electricity production capacity of 3.62 MW; it also has a production capacity of 15,000 tons of solid organic and 10,000 tons of liquid organic fertiliser per year. When additional investments are completed, it will be able to produce 35,000 tons of organomineral fertiliser annually.