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.