Announcements

Job offersmore »



Tweeting Growers

Top 5 - yesterday

Top 5 - last week

Top 5 - last month

Exchange ratesmore »




Evrika:

Large Russian greenhouse files for bankruptcy

The recent bankruptcy of Evrika, one of the largest greenhouse complexes in Northwest Russia, once again shows that Russia needs more than just greenhouses and natural gas to become self sufficient.

The history of Evrika (Russian for 'Eureka') has been marked by financial difficulties and bankruptcy. The project was announced in 2012 with an initial investment in a total of 15 hectares of high tech glass. Dutch greenhouse builder Bom Group was contracted to deliver 15 hectares and the project site even was prepared with the infrastructure for a total of 22 hectares of high tech glass.

While the project was announced with a lot of hubbub, construction was several times delayed due to financial trouble, changes in ownership and several lawsuits between owners and investors. This all started when Master Bank, the main financier of the project, lost its banking license in late 2013. Russia's Central Bank withdrawn the license from the midsized commercial bank as it was suspected of dubious operations.


Construction at the Evrika greenhouse. (Photo courtesy of BOM Group)

At that time, Evrika had then just purchased the materials to construct 15 hectares of greenhouse from Bom Group. Due to the cut in funds, the company sourced just enough financing to complete two sections of 5 hectare each.

Over the last two years, Evrika managed to produce cucumbers and tomatoes in the 10 hectare greenhouse, while still being in financial trouble and plagued by lawsuits. The other remaining 5 hectares of greenhouse was never finished and only the structure was raised. Evrika had all of the materials like the glass and heating available to complete the construction, yet there were no funds to finish the construction work.

It remains unclear if they will ever finish the construction of the third phase. Because last week, it was announced that the company will be put up for sale as a result of a bankruptcy. It was said that a local investor was renting the complex since late 2016 and that another company called Premier LLC is renting a three hectare section of the greenhouse.

Publication date: 1/24/2017
Author: Boy de Nijs
Copyright: www.hortidaily.com

 


 

Other news in this sector:

11/16/2017 US: Syngenta recognized as Analytics 50 company
11/16/2017 Tozer Seeds America celebrates its ten year anniversary
11/16/2017 Ushio opens new factory in Poland
11/16/2017 Klasmann-Deilmann presents Sustainability Report
11/16/2017 Syngenta sells assets to Nufarm in relation to the ChemChina acquisition
11/15/2017 Total Produce acquires 50% of California based “The Fresh Connection”
11/15/2017 NL: "Sustainable tomatoes without bitter aftertaste for next generation"
11/15/2017 US: BrightFarms hires new head of greenhouse development
11/15/2017 Syngenta to step up investments in China
11/15/2017 Timfog engineers residual heat project in Belarus
11/15/2017 Work Process Optimization is now the common thread at Hortimat
11/15/2017 "For foreign projects, check applicable conditions in the country"
11/14/2017 FormFlex celebrating 10 years in Mexico
11/14/2017 US (CA): Total Energy Group celebrates 30th anniversary
11/14/2017 Ridder-HortiMaX opens new office in Mexico
11/14/2017 Victorian vegetable grower Bill Bulmer elected as AUSVEG Chair
11/14/2017 Bulgaria: China-CEE e-trade hub for agricultural produce to open
11/14/2017 Inverca presents new logo at Expo AgroAlimentaria Guanajuato
11/14/2017 Italy: AgriControl combines retail needs and production management
11/13/2017 Polish technology finds place in global horticulture market