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Lantmännen invests SEK 500 million in new grain facility

Lantmännen invests SEK 500 million in new grain facility
An artist's rendering of Lantmännen's new grain silo in Uddevalla (image courtesy Tornum).

Swedish agricultural cooperative Lantmännen has disclosed that it is investing in a new grain reception and storage facility in Uddevalla, western Sweden. The investment of around SEK 500 million (≈ EUR 44.5 million), the largest industrial project of its kind since the 1980s, will be one of the cornerstones of Sweden's grain infrastructure through increased export opportunities and higher reception capacity.

The grain facility strengthens Swedish agriculture and will also be of importance for Swedish food preparedness.

During the spring, Lantmännen will begin the extensive work of building a new grain reception, drying, and storage facility in Uddevalla, which is expected to be operational in time for the 2026 harvest.

The facility is dimensioned to meet the future needs of both Swedish farmers and Lantmännen. Compared to the existing facility, it will be larger, have higher capacity, and be significantly more efficient.

Lantmännen’s expertise and financial capacity enable this type of significant investment for Swedish agriculture and food production. At the same time, the investment has the potential to become a key component in both a developed Swedish food preparedness and for increased export opportunities of Swedish grain, said Magnus Kagevik, President and CEO of Lantmännen.

Deep-water port location

As the contractor for the construction of the grain facility in Uddevalla, Lantmännen has signed an agreement with Tornum, which has local roots and a broad experience of investments in grain facilities, both in Sweden and internationally.

The new plant’s high reception and drying capacity ensure that farmers in the western part of Sweden can deliver grain both during and after harvest in an efficient way. Our new facility is located in an attractive port location, where access to a deep-water port provides the conditions for loading vessels of 30,000 tonnes. This means lower freight costs and the opportunity to reach, for example, the United States and North Africa, which pay higher prices than destinations that the smaller boats reach – and it means higher revenues for the farmers, said Elisabeth Ringdahl, EVP of Lantmännen Agriculture Sector.

The facility consists of 21 silos with two dryers for an estimated turnover of up to 100,000 tonnes of grain per year. There is also the possibility of adding additional silos if needed.

For me as a farmer and a member of Lantmännen, this investment means a focus on agriculture in western Sweden and gives an increased belief in the future of the area. It also shows the strength of the strong joint ownership that we have in Lantmännen, said Ulf Johansson, Chairman of Lantmännen’s district in Western Sweden.

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