Smithfield, the US meat industry giant with annual sales of 10 billion dollars, said it has not yet lost its appetite for new acquisitions on the Romanian market after having bought the assets of the former ComTim Timisoara complex for 33 million dollars.
"Smithfield is always interested in opportunistic acquisitions in the markets in which we participate," said Jerry Hostetter, who is company deputy chairman and responsible for communication issues.
He explained that the Romanian meat market is dominated by imports and that internal production would grow substantially in the future.
Hostetter declined to say what market share Smithfield was aiming for in terms of Romanian pork production and the sectors and companies it was eyeing with a view to future acquisitions, saying only that at the moment the American company is only doing business in Romania through the recently-acquired ComTim.
Sorin Minea, chairman of the Romanian Meat Association (ARC), which includes major players in the meat processing industry, says new acquisitions by Smithfield would only be in the meat industry.
"The current message by Smithfield does not necessarily prove they have a precise target, but that should an opportunity emerge on the market, they would clearly make a purchase," said Minea.
He said that the American company does not have a strong offer from the market at this moment, beside that from the charcuterie plant in Salonta "where they are now the majority shareholders". Claudiu Ciuciureanu, general manager of Principal Construct, confirmed that he continues to hold the majority stake in Salonta plant.
Smithfield has already started hiring personnel for ComTim and several months ago announced an investment plan of 350 million dollars.
Romania has negotiated with the EU an annual pig stock of 7 million. Currently production does not reach even 10% of this amount, with domestic consumption being largely sourced through imports. When Romania integrates with the EU, industry experts expect Smithfield to hold a 40% market share, clearly giving it the market leader position. "We have no comment on Romania's pig production negotiations with the EU," says Hostetter.
Early this year, Smithfield launched a powerful campaign to conquer the European market by acquiring an initial stake of 15% in Campofrio Alimentacon of Spain, which is an important player in the European meat industry with sales of 750 million euros and owner of the Tabco-Campofrio company in Romania.
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