Mill investments require significant capital as a strategic part of the food supply chain. The selection of the right investment model and financing strategy directly affects the project’s success and long-term profitability. As Tanış A.Ş., with our over 60 years of experience, we offer comprehensive solutions for planning, financing, and optimizing mill investments.

New Facility Establishment Investments

Greenfield new facility investments have the following characteristics:

Advantages:

• Modern technology and optimum facility design

• Flexibility in capacity and future expansion planning

• Energy-efficient systems integration

• Optimum process flow and layout

Challenges:

• High initial capital requirement

• Longer project duration and commissioning process

• Market creation and customer portfolio development

• Risk of operational experience deficiency

Phased investment planning and comprehensive feasibility studies are critically important in new facility investments.

Modernization of existing facilities provides lower investment amounts and faster returns:

Modernization Strategies:

• Renewal of key equipment

• Increasing automation level

• Transition to energy-efficient systems

• Quality control systems improvement

Capacity Expansion Approaches:

• Gradual increase based on bottleneck analysis

• Efficiency increase through process optimization

• Shift system optimization

• Storage and logistics capacity expansion

Typical payback period in modernization projects varies between 2–5 years.

Acquiring an existing mill operation provides rapid market entry:

Evaluation Criteria:

• Facility age, technology level, and condition

• Capacity and capacity utilization rate

• Customer portfolio and market position

• Operational efficiency and profitability

Valuation Approaches:

• Discounted cash flow method

• EBITDA multiple (typically 5–7x)

• Net asset value and replacement cost

• Market comparison analysis

Comprehensive due diligence should be conducted during the acquisition process.