Șerban Holding Group is investing 62.5 million euros in a french fries processing plant and expanding cold storage capacity for vegetables

Șerban Holding Group, one of the leaders in Romania's agri-food industry, is investing 62.5 million euros over the next four years through two major projects approved for funding by the Agency for Rural Investment Financing (AFIR). The projects are aimed at processing and storing potatoes, creating a perfect synergy between the cultivation, processing, and industrialization of products obtained from their own harvest and beyond.

1. Frozen French fries and potato flakes processing line

The project titled Potato Processing Plant, submitted through Programul Național de Investiții InvestAlim, on December 24, 2023, and deemed eligible for funding on September 24, 2024, involves the implementation of a robotic processing line for frozen French fries and potato flakes in the town of Sascut, Bacău County.

“Companies that stop expanding will die sooner or later. Looking towards the future, the next objective for GSH in terms of projects is the development of an underrepresented industry in Romania: potato processing for the production of frozen French fries and potato flakes,” stated Nicolae Șerban, founder of Șerban Holding Group.

The line will be the largest potato processing line in Romania with Romanian capital, having a capacity of 6 tons per hour for French fries and 1.2 tons per hour for potato flakes. The production will be intended for both the local and international markets. The annual capacity of the factory will be 30.000 tons of French fries and 6.000 tons of potato flakes.

Șerban Holding Group is also working on implementing the Sustainable Social Ecosystem, a revolutionary concept in Romania that will engage and educate local farmers. The goal is to share our agribusiness know-how and invite farmers to explore new opportunities in areas such as vegetable farming, sheep and cattle raising, or egg production.

“Through this initiative, we will amplify the impact of our business model and contribute to reducing the carbon footprint by using efficient and sustainable agricultural technologies, working together for a cleaner environment and greener agriculture,” stated the founder of Șerban Holding Group.

The two projects are synergistic: the processing plant will also use vegetables grown by local farmers supported through the Sustainable Social Ecosystem program. In this way, we support the local economy and develop sustainable agriculture, reducing the carbon footprint.
„The fact that we use potatoes from our own production, as well as potatoes from local farmers' production, represents a major advantage, giving us the ability to control quality throughout the entire production chain and deliver high-quality products.," stated Nicolae Șerban, founder of Șerban Holding Group.

Project Details for InvestAlim:
• Annual production capacity:: 30.000 tone de cartofi prăjiți și 6000 tone de fulgi de cartofi
• Total investment value:47,2 milion euros
• State grants, non-reimbursable funds:28.3 million euros
• Location:Sascut Commune, Bacău County

Șerban Holding Group reaffirms its commitment to sustainable growth, a goal that has been the foundation of all the company’s investments. Starting in 2019, Șerban Group implemented its first irrigation projects, and in 2021, took a significant step in the agricultural sector by transitioning to large-scale irrigated vegetable cultivation. This is part of the company's multi-annual strategic plan for sustainable development, which takes into account future socio-economic and bio-climatic developments.

From the very beginning, Șerban Holding Group understood the importance of an integrated agricultural chain and the necessity for each new business line to be taken to the final product, closing the production cycle and ensuring high added value. Thus, the natural next step after vegetable cultivation was the creation of cold storage facilities to maximize profitability and guarantee product quality until commercialization. Starting in 2023, the company initiated the construction of cold storage facilities for vegetables.

2. Potato storage and processing warehouses

Șerban Holding Group was declared eligible for a second major project aimed at potato storage and processing, funded through measure DR 22 – Investments in conditioning, storage, and processing of agricultural and horticultural products.
The project includes the construction of 5 refrigerated warehouses, each with a capacity of 6,000 tons, for a total capacity of 30.000 tons. Additionally, the project plans for a 5.000 square meter logistics warehouse and a sorting, washing, and packaging line for potatoes, with a capacity of 10 tons per hour of finished product.
By the end of 2024, Șerban Holding Group will strengthen its position as the leading cold storage operator in Romania, with a capacity of 21.500 tons. Upon completion of the project, the group will have a total cold storage capacity of 51.500 tons.

Project details::
• Total warehouse capacity: 30.000 tone
• Logistics warehouse5.000 square meters
• Sorting and packaging line capacity: 10 tons per hour
• Total project value: 15,3 million euros
State grants, non-reimbursable funds: 9,99 million euros

This project will support Șerban Group's capacity to store, sort, and prepare potatoes for processing and distribution, facilitating the efficient management of production within its own facilities.
"Through the two projects – the potato processing plant and the storage and processing warehouses – we complete the cycle initiated by Șerban Holding Group in recent years. These investments, made through the national InvestAlim project and with the support of European funds via AFIR, close the loop of our production chain: from harvest to processing, storage, and delivery. In this way, we achieve complete control of the process, ensuring consistent quality and superior efficiency.", stated Irina Șerban, co-founder of Șerban Holding Group.

Șerban Holding Group's shares have been listed on the AeRO market of the Bucharest Stock Exchange since February 28, 2022, and are traded under the symbol GSH. Currently, the company has a market capitalization of approximately 286 million lei.
***
About Group Serban Holding
Șerban Holding Group is a rapidly expanding group of companies with Romanian capital, which began its activity in Onești in 1994. The group's structure is integrated and includes the following areas of activity: agriculture, trade in grains, oilseeds, and vegetables, Angus cattle and Ile de France sheep farming, bakery, pastry-confectionery, public catering (own chain of stores – Băcăniile Șerban, Grill, LuMA cafeteria), distribution, and transport.
The mission of the Șerban Holding group of companies is to provide partners with quality products and services, to create an environment where employees can make the most of their potential, and to develop a trusted brand for Romania and beyond.