Pasta producer ProPast Iasi, which was hit by last year's wheat shortage, was bought by one of Romania's largest bread and bakery product manufacturers, Boromir Ind, based in Ramnicu-Valcea.
Boromir, which last year logged turnover worth 50 million euros, took over a 95% stake in ProPast Iasi under a 600,000-euro transaction. "We closed this transaction to expand horizontally and to make the most of the flour production. The Iasi-based company was not able to cope with last year's wheat crisis and encountered problems," says Constantin Boromiz, president of the Boromir Group and one of the five shareholders of the company.
Prior to this transaction, Boromir had a pasta production capacity amounting to some 3,300 tonnes/year at Extrasib Sibiu, a capacity that will double following the takeover. Last year, ProPast's sales dived to about 3,500 tonnes of pasta, down from approximately 6,000 tonnes in 2002, to 2.3 million euros. The main pasta brands held by ProPast are Giani and Zanolli. The company also makes mustard, tomato sauces and spices and has 130 employees.
Boromiz forecasts an increase in the consumption of pasta in Romania and is also betting on exports. "Romanians will spend less and less time in the kitchen, down to some 15-20 minutes. Moreover, this autumn we will launch hard wheat pasta, which has a much higher protein content than the normal varieties," Boromiz said.
Boromir invested 3 million euros this year, in a wheat mill located in Ramnicu-Valcea with a daily capacity of 180 tonnes, and in a champagne biscuits plant. Last year, the company invested about 12 million euros in equipment, in developing its pastry sector and in the purchase of vehicles for distribution.
The group posted H1 sales worth 35 million euros, up 30% from the corresponding period of last year. Last year's sales, standing at 50 million euros, were 70% higher than the level logged in the previous year.
stelian.negrea@zf.ro
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