Vel Pitar Ramnicu-Valcea, one of the main players in the milling and bakery industry, has invested more than 3 million dollars (2.4 million euros) in launching two new product ranges by the end of the year.
The total value of company investments this year is 6 million dollars (4.8 million euros) and was used to modernise production areas, the company''s own stores and its fleet of cars.
"We have purchased state-of-the-art production lines, and by the end of the year we will launch a range of confectionery products," said Dan Trifu, vice-president of Vel Pitar''s strategy-finance department.
The company registered a 12% growth in turnover in the first half of the year to reach 45 million dollars (36 million euros).
"Calculated in terms of domestic currency, the growth is much more modest, with the prices of our products falling this year due to an increase in the grey market," Trifu said.
He added that Vel Pitar is expecting a surge in sales in the second half of the year, compared with the first six months. "The first few months of the second half of the year support our estimates, based both on our efforts to boost traditional operations (milling, fresh bread, biscuits) and on last year''s investments having reached a certain level of maturity, especially toast production," he explained.
Last year the company completed a 1.5-million-euro investment in a new production line, which is mainly used for its sliced bread packaged at its Berceni factory.
"This production line has a capacity of 20 tonnes every 24 hours, and the main growth in this segment was seen in the key-accounts networks," Trifu said.
Vel Pitar recently completed its merger by absorption with Panem Giurgiu and Panificatie Postavarul Brasov. The company was aiming to consolidate its position through acquisitions. In the past two years, Vel Pitar purchased Libertatea Panificatie Bucharest, the bread factory in Bals, Gorjpan Targu Jiu, Pangran Iasi and Spicul Arges Pitesti.
After every acquisition, company officials would say they were looking for more companies to take over. Vel Pitar was established at the end of 2001, after the merger between Mopariv Ramnicu-Valcea, Berceni Bucharest, Granpan Tecuci and Mopariv Cluj-Napoca.
"We are permanently in talks with three or four companies in view of further acquisitions, but this does not mean that all of them will be eventually bought. The growth pace that we can manage is two factories every year," Trifu added.
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