Slavonija makes a bid for 4 silos

Development
1 September 2016

It is strategically such an important decision to acquire these 4 silos
 

Slavonija Slad needs to have more storage capacity for grains in the immediate vicinity. There are not a lot of possibilities nearby for storing malt, so these silos which are actually situated in our complex would be a  great solution.
 

There are 4 of them: the fi rst one – which we are already using – can contain 26 kiloton. The other 3 silos have capacities of 4 kiloton, 6 kiloton and 10 kiloton. All together they can handle 46 kiloton which would stimulate the grain business in Croatia
 

How we will use thos silos is still to be determined

‘Unfortunately, they are not in a very good state, so investments need to be made after the purchase. But that was an asset during the bidding on the silos: we explained to the owner that the longer it takes to accept our bid, the longer the silos will be out of use. That also means the repair costs will be higher and the value – and therefore our bid – would be lower.’

‘We have diff erent plans for the silos. The smallest one could be resold to one of our sister companies. The one with the capacity of 6 kiloton will be rented out, and maybe a part  of silo 3 – with a capacity of 10 kiloton – will be rented out as well.’ We'll have to keep thesituation under review.

When will you know if we won the bid?

‘Any moment now. In the beginning of the summer the agreement between the owner of the mortgage – which is a bank – and us, was almost fi nalised. I’m expecting the green light very soon.