Hyundai Heavy to acquire 67.6% stake in agricultural company

Hyundai Heavy Industries (HHI) agreed to acquire a 67.6% stake in Khorol Zerno LLC, an agricultural management company, for about $6.5 million.

Khorol Zerno manages a farm covering 10,000 hectares in Khorolsky Rion, Russia.

The farm is operated by the crop rotation system to minimize fertilizer consumption and maintain soil richness. Khorol Zerno plans to produce 60,000 tons of corn and beans annually by 2014.

Khorolsky Rion is well situated to supply its crops to domestic consumers and export to other countries with well developed road infrastructure for distribution. It is a two and a half hour drive away from Vladivostok.

HHI expects to help Korean livestock farms by freeing them up from sudden price changes and supply shortages of provender.

HHI plans to manage it directly by dispatching permanently stationed staff and increase management efficiency with advanced agricultural methods. The company will also invest an additional $9 million for the expansion of its farmland to 50,000 hectares by 2012.<Korea Shipping Gazette>