Dirk Röse

Klasmann-Deilmann expands in Australia

Ger­man Gro­wing Media Com­pa­ny to acqui­re Australia’s lea­ding sub­stra­te producer

The Klasmann-Deilmann Group is con­ti­nuing its growth cour­se at inter­na­tio­nal level. With effect from July 31, 2021, the Ger­ma­ny based mar­ket lea­der in gro­wing media is taking over Aus­tra­li­an Gro­wing Solu­ti­ons Pty Ltd (AGS). AGS is the lar­gest and most renow­ned sup­plier of raw mate­ri­als and substrates to the Aus­tra­li­an com­mer­cial hor­ti­cul­tu­re mar­ket. Both com­pa­nies are lin­ked by a long-stan­ding part­ners­hip. With this tran­sac­tion Klasmann-Deilmann intends to incre­a­se its pro­duct ran­ge of high-qua­li­ty raw mate­ri­als and gro­wing media, espe­cial­ly based on rene­wa­ble raw materials.

The acqui­si­ti­on fits per­fect­ly into our port­fo­lio,” says Moritz Böcking, Mana­ging Direc­tor of the Klasmann-Deilmann Group. “With AGS we are taking ano­t­her big step into the Aus­tra­li­an mar­ket, and we are gai­ning very valu­able know-how in com­pos­ting pine-bark.” Klasmann-Deilmann aims to incre­a­se the share of rene­wa­ble raw mate­ri­als in its Group-wide sales mix to 30% by 2025. AGS had also recent­ly com­mis­sio­ned a wood fib­re plant that uses tech­no­lo­gy deve­lo­ped by Klasmann-Deilmann.

The glo­bal demand for gro­wing media con­stant­ly incre­a­ses – due to the rising popu­la­ti­on and chan­ging nut­ri­ti­on habits. For many deca­des we have been ser­ving our cus­to­mers from our sub­stra­te manu­fac­tu­ring sites in Euro­pe. Now, we want to take the next step and add a part­ner-pro­duc­tion net­work to our sub­si­dia­ries and in that way use more local­ly avail­ab­le raw mate­ri­als,” says Böcking. Klasmann-Deilmann alrea­dy part­ners with sub­stra­te pro­du­cers in Euro­pe and in Asia.

Only recent­ly, Klasmann-Deilmann had ent­e­red into a joint ven­ture with the Dut­ch Olde Bol­haar Group, the mar­ket lea­der in north-wes­tern Euro­pe for green com­post pro­duc­tion. In 2020 Klasmann-Deilmann clo­sed a part­ners­hip with Shak­ti Cocos to secu­re resour­ces of coir raw mate­ri­als. “We invest into the raw mate­ri­al sup­ply for the future and decen­tra­li­ze our pro­duc­tion,” exp­lains Moritz Böcking. “That way our pro­ducts beco­me more sus­tainab­le and even more avail­ab­le to our glo­bal customers.”

AGS will con­ti­nue to manu­fac­tu­re under its own brand and sup­ply all cus­to­mers with high-qua­li­ty pro­ducts as usu­al. The pro­duc­tion faci­li­ty and head­quar­ters in Tyabb, Vic­to­ria, as well as the new site in South Wind­sor in NSW will be upgraded. Invest­ments in the expan­si­on of pro­duc­tion capa­ci­ties and qua­li­ty assuran­ce are in preparation.

Foun­ded in 1913, Klasmann-Deilmann is the lea­ding cor­po­ra­te group in the inter­na­tio­nal sub­stra­te indus­try, with sales and pro­duc­tion com­pa­nies in Euro­pe, Asia and Ame­ri­ca. On every con­ti­nent, their gro­wing media pro­vi­de a vital basis for the growth of fruit, vege­ta­bles, edi­ble mushrooms, orna­men­tal plants, trees and shrubs, and help ensu­re the suc­cess of part­ners and cus­to­mers in the com­mer­cial hor­ti­cul­tu­re sec­tor. Moreo­ver, Klasmann-Deilmann mar­kets the inno­va­ti­ve pro­pa­ga­ti­on sys­tem Grow­coon and has recent­ly laun­ched the digi­tal Ser­vice-plat­form “Log and Sol­ve” for growers.