The European Bank for Reconstruction and Development (EBRD) and Israeli food producer, Tnuva, boosted the share capital of Tnuva Romania Dairies by 2.85 million euros (10 million RON).
This brings the company's share capital to a value of around 4.9 million euros.
Tnuva had a cash contribution of 1.8 million euros, while the contribution by the European Bank for Reconstruction and Development amounted to 1 million euros.
"No change has been made in the budget of the 55 million-euro project Tnuva has launched in Romania. The capital increase is just a technical aspect," Sagit Tzur Lahav, marketing manager with Tnuva Romania, told ZIARUL FINANCIAR. Tnuva last year started investments worth 55 million euros to build a dairy plant and a farm close to Bucharest.
The European Bank for Reconstruction and Development is funding 35 percent of Tnuva's project.
Tnuva acquired a 13 hectare plot of land in the Popesti-Leordeni area, where it started a greenfield project for the first plant the group is going to develop outside of Israel. Tnuva Romania will have 200 employees.
Tnuva is the second foreign company to invest in the greenfield construction of a dairy farm, after a similar move by the French group Danone.
In the first stage of development, Tnuva's plant in Romania will have a production capacity of 30 million litres per year, with the production facility to reach a maximum capacity of 60 million litres per year, namely around 200,000 litres daily.
According to the company's representatives, when the plant is producing at full capacity, sales will reach 68 million euros.
Domestically, the Israeli group is going to have two subsidiaries: TRD-Tnuva Romania Dairies and TRM-Tnuva Romanian Milk, with the former focusing on production and marketing and the latter to include a cow farm.
Tnuva is the biggest producer in the Israeli food industry, logging annual sales standing at 1.2 billion dollars.
The dairy market last year amounted to around 800 million euros, with the main players on this market including Friesland, Danone, LaDorna, Hochland, Albalact, Covalact.
Romania negotiated with the European Union a quota of 3.3 billion hectolitres, of which, around 1.2 billion are obtained in an industrialised system.
Over the following three to four years the dairy market will go beyond the one billion euro mark, while the industry is going to process 2 billion litres of milk annually, almost double the quantity processed at present.
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