OREANDA-NEWS. April 02, 2012. The Board of Directors of KSG Agro S.A. is pleased to inform, that on the 29th of March, 2012 there were two agreements between the Company and Grupa PEP – Polish Energy Partners signed.

 License agreement, according to which Grupa PEP will provide the Company with the technical know-how on implementing technological line and equipment supply for the energy pellet production factory. Such license will allow the Company to build energy pellet production factory with the processing capacity of 90 000 tonns of straw annually.
 According to Energy Pellet Supply agreement the Company will supply Grupa PEP with the energy pellets, produced from straw. Since the factory will start operations in autumn 2012, this year KSG Agro will supply to Grupa PEP around 15 000 tonns of pellets, produced on this factory. The guaranteed supply will start from January 1st, 2013 and finish in 2019 if parties won’t agree other terms. Annual quantity of the guaranteed supply has to be not less 50 000 tonns.

 Let’s remind, the Group has already installed and steted operations on two production units with the total output capacity of 7 000 tonnes o pellets annually.