HempFlax invests €5,000,000 in Romanian hemp market

Press Release HempFlax, the leading Dutch hemp processing company, has invested 5 million euros in the Romanian hemp industry. Their first factory opens this October in Alba. Recent years have seen an increase in the market for cultivation and processing of hemp, with crops farmed in Romania being sought for export and used in various industries.


PRESS RELEASE: 13.10.2015

HempFlax double cut technology in action

HempFlax, the leading Dutch hemp processing company, has invested 5 million euros in the Romanian hemp industry. Their first factory opens this October in Alba. Recent years have seen an increase in the market for cultivation and processing of hemp, with crops farmed in Romania being sought for export and used in various industries.

Prior to 1989, Romania was the fourth largest exporter of hemp worldwide. However, the amount of hemp grown decreased sharply after that period, reaching only few hectares in 2000. Currently, investors are again turning their attention to this market. The private investment of 5 million euros by HempFlax is a significant contribution to the revival of the Romanian hemp industry.

Hemp – a natural resource

Hemp plant in one of Romanian fields
A hemp plant in one of Romanian fields

HempFlax supports the initiative of the Romanian state to provide grants for farmers growing hemp for its seed and stems. The company is also purchasing the raw material in bales from Romanian farmers. Hemp fibre is a sustainable, renewable and therefore practically inexhaustible raw material for industrial uses. It is also one of the strongest natural fibres in the world.

„With an innovative vision and vigour, HempFlax contributes to the progress of agriculture in Romania. By providing renewable resources, the synthetic fibres made from fossil resources- such as nylon, fiberglass and plastics- can be replaced by fibres from natural resources such as hemp.”, explains Oana Suciu, CEO.

In 2015, the area cultivated by HempFlax is approximately 500 hectares located in Sebes, Pianu and Petresti. Investors expect an increase of approximately 300 hectares per year. The processing capacity of the factory is four tons of stalks per hour, which means a target of 5,000 cultivated hectares in order to reach maximum capacity.

The company also aims to establish cultivation contracts with Romanian farmers, supporting the development of the industry. HempFlax encourages an environmentally responsible approach by Romanian entrepreneurs and consumers, while discouraging unnecessary deforestation and environmental change. A worldwide leader in hemp processing, the company aims to revive the agricultural sector of Romania, returning it to its former status as a prolific exporter of hemp.

The cultivation conditions and utility of hemp

HempFlax double-cut technology
The HempFlax double-cut technology allows for the simultaneous harvesting of both seeds and stalks.

One of the most important HempFlax products is hemp fibre, used in the insulation and paper industries, in the manufacture of car door panels, and not at least in the textile industry. Hemp ‘wood’ (the interior of the stalks) is used in construction, mixed with hydrated lime to create an ideal insulation and construction material for houses or industrial buildings, replacing traditional bricks or concrete.

The process of hemp cultivation is natural and environmentally friendly. It does not require pesticides, insecticides or fungicides. After harvesting hemp, the stems are left on the field to naturally begin separating the fibres from the stalks, a process which is completed by custom-built HempFlax machinery without the use of chemicals.

Protein-rich hemp seeds are used in the food industry. The leaves are dried and used for tea blends, but also for the extraction of CBD oil, used in nutritional supplements and cosmetics.

In Romania, today’s legislation allows for the cultivation of industrial hemp. Only a select few varieties can be grown, those that are certified as having a THC level under 0,2%. The strains of industrial hemp Jubileu, Dacia, Diana, Zenit and Denise are Romanian varieties developed by the Secuieni Institute, and can be grown successfully in Romania.

About HempFlax

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Since its founding in1994, the mission of HempFlax as a pioneer of European industrial hemp cultivation and processing has been to serve both people and the environment by providing modern, natural products made from hemp stalks, and also from flax. By combining tradition with innovative technology and developing a fully integrated manufacturing process, HempFlax provides customers with sustainable, environmentally friendly, affordable products that meet a high standard of quality.

HempFlax also designs, develops and patents specialized equipment for the cultivation and harvesting of hemp, including an innovative harvester that manages to combine three distinct harvesting operations at the same time: those for the seeds, the stems and the leaves.

Comment Section

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nol van schaik

Well done, Ben and Hemplax!!! Great soil there!

13/10/2015

Rich Mikesell

I sincerely respect Hemp/Flax and Sensi Seeds for investing in our planet. Cannabis Hemp is certainly in the top 5 of most beneficial plants on Mother Earth. If more people/companies invested more, in our only home, we might be able to reverse or at least slow down the destruction of our habitat. Way to go, Hemp/Flax!!!

14/10/2015

michelle

very interesting article. how much per acre would a farmer recieve?

15/10/2015

HempMayor

What i find most funny is the lack of people willing or able to answer questions such as yours...
Profits vary per area/region/country grown.
First, you have what it costs to grow per acre (most times cannot get insurance)
Second, you have the amount that the farmer/broker can sell either whole stalk or processed stalk into various components.

Most times i find that thinking in reverse engineering works for crop solutions like this. Look at the end buyer or market and work it backwards within your locale as much as possible.

There are many fixed numbers and parts, but many are specific to areas or industries and processing is what "drives" an industry like Hemp. To the world of production, unprocessed Hemp is worthless as companies do not have vertical supply chain for something like Hemp. It is not rocket science, but it is not simple either.

I can throw down some general numbers,

Hemp Seed prices are hard to evaluate for me as i generally work on 100 acres or more, outside the U.S. But i can say that Kenaf Seed (mimics Industrial Hemp), can be freely imported into the U.S. (reducing costs) @ $3.00-$8.50/lb depending on the volume you order and some other factors.

Pricepoints you need to be able to meet to sell processed material,
Core (hurd, shiv) can sell from 0.28/lb-$1.20/lb which means someone has processed the core in anyway from 1st stage decortication to milling the core. or,

Selling Core in bulk to some industries at a rate of 100 tons/day @ $50-$75/ton which requires little processing but more cleaning.

Fibers can be tough base on the volume you would need to meet for u.s. sales relationships other than new business avenues of smaller or niche markets...

Fibers generally move in 5,000 lbs or more a week at a rate of 0.33-$1.20/lb varying by tech level of the buyer and quality of item being produced. Some buyers buy couple hundred lbs/week, other buyers can go through 20,000lbs/week @ 0.33/lb and they import kenaf/jute/sisal right now.

Maybe some of this can help you...
So there are no cookie cutter answers, but there are fixed and determined costs and profits to be gleaned as soon as a desired path is determined. this is why i try to get people to understand the need for Feasibility Studies and a Life Cycle Analysis approach to solutions and i am happy to "help" anyone who is seriously looking at seriously getting involved.

I know how it all happens and I can show others a better way

24/07/2016

IOAN STAHIE

Vreau sa stiu mai multe despre modul de cooperare dintre Hemp/Flax si cultivatori din zona P NEAMT tel 0757085514 in limba romana

25/05/2016

Scarlet Palmer

Hello Ioan,

Thank you for your comment. I have forwarded it, and your email address, to the HempFlax and HempFlax Romania teams.

With best wishes,

Scarlet

Bună ziua Ioan ,

Multumesc pentru comentariu. L-am și adresa de e-mail au transmis , la echipele HempFlax si HempFlax Romania .

Cu cele mai bune urări ,

Scarlet

25/05/2016

AntonioNeal

The hemp that I have seen growing wild in Romania is not very bulky in size. There is a well known producer of hemp products currently in Romania 'CANNA'

09/08/2017

AntonioNeal

The wild hemp that grows in Romania is not very bulky in size as you can see from the picture above. There is currently a well known producer of hemp nutritional products. I noticed that on their packaging they are reporting higher percentage rates of nutrition compared to other hemp products, especially for protein. Does anyone know if this is because of the soil quality, or because the manufacturer is exaggerating it's claim? And does anyone know who is actually overseeing the hemp market in Romania? It seems that people can do what ever they want in Romania as long as they have money.

09/08/2017

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