Hamburg based KTG Agrar has acquired the deep-freezing facility in Manschnow, which currently processes about 20,000 tonnes of frozen vegetables per year.
With a capacity of 10,000 pallets, the plant comprises three packaging lines and employs 47 people on the site.
KTG Agrar CEO Siegfried Hofreiter said: "We have agreed much higher delivery volumes with German retailers for the 2014/2015 season and also were quite successful at Sial, the world's largest international food and beverage trade fair.
"We therefore decided to take advantage of the attractive purchase option for the Manschnow plant, which we have rented for about one year."
With this acquisition, Manschnow plant will be a part of the food section of KTG Group, which already includes Frenzel Tiefkühlkost, Bio-Zentrale Naturprodukte and lmühle Naturl Anklam, the Die Landwirte brand and the fresh produce facility in Linthe.
"This will allow us to fully leverage the potential of the plant and its highly motivated staff as well as the synergies arising within the KTG Group," Hofreiter added.
The new addition will also offer numerous potential synergies for the KTG Group, particularly in cooperation with Frenzel Tiefkühlkost in Ringleben.
The plant will help KTG to meet the growing demand for products such as ready-made potato dishes, potato fritters, pancakes and cabbage rolls.
With this expansion, the food segment of KTG Group is expected to produce as much as EUR100m in sales in 2014.
