Ulster Bank loan enables £18m agri-food development

23rd February 2010

One of Northern Ireland’s largest agri-food businesses is investing £18m in a state-of-the-art animal feeds plant at Doogary near Omagh, with Ulster Bank as the principal backer.

The Fane Valley Group, which acquired the long established Scotts Feeds business in 2000, is relocating the company from its current town centre location to a new state of the art mill on the Doogary West Industrial Estate on the outskirts of Omagh.

The Ulster Bank-backed project will create one of the most advanced plants of its kind in Europe, delivering significant efficiencies in terms of energy demand and environmental impact.

Trevor Lockhart, Chief Executive of Fane Valley Group says: "Ulster Bank has been a steadfast source of support for the group and has had the foresight to see the importance of this investment for us and the local farming community. We look forward to opening the new facility later this year and it will form a key part of our future growth plans."

Nial Douglas, Senior Manager, Ulster Bank Corporate Banking says: "This is an important investment by the group, which will significantly increase operating capacity of Fane Valley Feeds, allowing them to continue their growth in Northern Ireland's highly competitive animal feed sector".

"We have a strong relationship with Fane Valley, going back many years, and are very pleased to help support the continuing success of the group, which employs more than 1,500 people and is owned by some 1,900 members of the local farming community," he adds.

The new plant will secure jobs in the Omagh area for the foreseeable future while a new agricultural retail store which opens on the same site in early spring 2010 is creating new employment opportunities.

The new mill, which will be completed in April and operational by the summer, will complement the group’s other production facility in Newry which serves the south and east of Northern Ireland to give a full coverage of the northern half of the island, including Donegall and the border counties of Cavan, Monaghan and Louth.

In addition to providing a significant amount of support to the corporate sector, Ulster Bank has provided almost £250m in funding to small and medium-sized enterprises in Northern Ireland during the past 12 months. The investment package for Fane Valley Group was also supported by finance firm Lombard.