Meggle considers greenfield investment

German company Meggle, the European leader on thebutter market has evaluated 14 local plants in the dairy industry but is now considering a greenfield investment, after deciding not to acquire a production facility. "The German shareholders are considering a greenfield investment for local production because they saw 14 local plants and couldn't find anything acceptable," says Viorel Sangiorzan, commercial manager of Meggle Romania. Sangiorzan says many of the facilities currently available are extremely old and would require too large an investment in redevelopment, whereas other facilities the company viewed were priced way above their value. "Plants such as Lacta Giurgiu are attractive because of the land they own, but we are not interested in real estate speculation, only in production," adds Sangiorzan. Amo ng the plants that Meggle has shown interest in are Prodlacta Brasov, Lacta Giurgiu, Raraul, Remetea, the milk plant in Miercurea-Ciuc, as well as a smaller-capacity production facility in Oravita.