Spanish Coren Group, a business of more than 750 million euros, announced a 25 million-euro investment in the Romanian livestock farming sector.
"Romania is facing a serious decline in production facilities, especially where pork is concerned. This is all the more reason to invest in this sector in order to provide the basic materials for the processing industries and to meet the fresh meat demands half-way," said Manuel Gomez Franquiera, Coren Spain's chief executive. He said the company would invest 25 million euros in Romania in order to develop the swine farming sector - an investment initially comprising 25,000 sows.
However, the Spaniards announced that they had not given up their plans to sell their charcuterie (cold meats, etc.) factory in Giurgiu and their distribution company.
"We keep having meetings with investors that want to buy our two businesses, but will not see this deal through unless potential buyers are willing to pay what we ask. We even have a meeting with a potential buyer scheduled for this week," says Alberto Mas, the Spanish investor that owns 45% in Coren Romania, with the rest held by the parent company.
The Spaniards last year authorised international advisory firm Larive to find a buyer for the two companies appraised at 3 million euros.
Mas says the sale of Coren's two Romanian businesses in no way poses a problem for the parent company's plans for the livestock rearing sector.
"Coren is the Spanish market leader in the fodder sector, it is number three in swine farming and fowl production, as well as being number one on the turkey farming sector, which shows it has extensive experience in livestock farming," Mas stated. He added the livestock farming investment would become operational early next year.
Florin Solcan, Coren Romania's manager says Coren's charcuterie sales on the Romanian market amounted to nearly 2 million euros last year, up 30% from the previous year. This year's growth is expected to reach 30%-35%.
The sales of the two companies amounted to about 3 million euros last year. "Sales are going well and we hope that having our own livestock farming operations will provide us with an additional edge to boost sales," Solcan explained.
Coren entered the Romanian market in 1998 when it paid 4 million euros to buy the charcuterie factory Carnig Giurgiu. Coren owns production facilities in Spain, Portugal, Argentina and Romania and employs 2,500 people. It produces pork, beef and rabbit meat, eggs, milk, cheese, canned foods and animal food.
stelian.negrea@zf.ro
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