FEERUM S.A., a leading manufacturer of comprehensive grain elevators in Poland, with a strong position on export markets, has concluded an agreement with TOMY M&M Sp. z o.o. based in Lutomierz. The subject of the agreement is the production, delivery, assembly and commissioning of a storage and drying facility by the Issuer. The facility will be located in Stoszowice, in the Lower Silesian Voivodeship by October 31, 2025. The value of the agreement is PLN 35.7 million gross (PLN 29.0 million net). Payment will be made in tranches – a total advance payment of PLN 11.4 million gross (PLN 9.2 million net), the second tranche of PLN 18.2 million gross (PLN 14.8 million net) in line with the progress of work based on work acceptance protocols prepared at the end of each calendar month and the remaining PLN 6.1 million gross (PLN 5.0 million net) will be paid after final acceptance.
The Agency for Restructuring and Modernisation of Agriculture has granted the Ordering Party, as part of the National Reconstruction Plan, a subsidy to refinance costs incurred in connection with the planned construction of the storage and drying facility in question. The amount of the subsidy may amount to a maximum of 50% of the eligible costs incurred by the Ordering Party, but not more than PLN 15 million.
The planned refinancing by the Ordering Party of part of the costs incurred on the basis of the concluded agreement with the above-mentioned subsidy indicates the real availability of funds from the National Reconstruction Plan for Polish farmers and processors. The release of these aid funds constitutes a significant development impulse for investments in the agricultural sector in Poland, including investments in new storage and drying facilities, which the Issuer in turn assesses as a very good prognosis for the expansion of its portfolio. The conclusion of this agreement is also consistent with the consistently implemented strategy of the Issuer, consisting in building a strong Polish industrial brand that provides Polish and foreign agricultural producers with technological solutions in the field of storage, drying and transport of seeds, at the highest world level.