Cargill Romania, the domestic branch of Cargill, the US food industry giant, projects that turnover will grow by 20%, to 120 million euros this year.
The domestic branch of the US group with annual turnover worth 60 billion dollars (48bn euros) has decided to start a re-branding process for all the companies it has acquired in Romania. In the wake of this process, Comcereal Alexandria, bought in 2004, will become Cargill Cereale, FNC Calarasi, purchased in 2000, will be renamed Cargill Siloz, while the vegetable oil producer, Olpo, acquired in 2005, is now named Cargill Uleiuri.
"We are in the final stages of the process. In the case of Comcereal and Calarasi, they will be re-branded using the Cargill name within three months. Olpo will also be integrated, but in July," Jose Fauda, a financial officer with Cargill Romania, told ZF.
Fauda specified that in most countries where its products are sold, the US group adopted a re-branding policy for the companies it acquired. "We want all the companies of the group to be known as members of Cargill, which adds value to them," mentioned Fauda.
Cargill representatives announced an investment programme worth 5 million dollars (3.9 million euros) for the modernisation of the silo network and the Podari-based vegetal oil plant this year.
"We will continue to invest in the Podari-based vegetable oil plant this year, too, but significant sums are also earmarked for the modernisation of silos in view of Romania''s EU accession," said Fauda. He specified the value of acquisitions Cargill had made on the Romanian market during the last ten years amounted to approximately 60 million dollars (48 million euros), in addition to the 10 million dollars (8.1 million euros) invested in the silo network and vegetal oil plant.
The US group owns 46 silos and grain warehouses in Romania, in Braila, Calarasi, Teleorman, Galati, Giurgiu, Olt and Ialomita counties, with a capacity of approximately one million metric tonnes.
Last year, Cargill expanded its business in Romania, after buying Olpo Ulei Podari, previously owned by Topway Industries, specialising in oleaginous seed processing, vegetable oil refining and bottling. The plant has two production facilities, in Podari and Craiova. The company has 1,300 employees.
According to a Cargill representative, the group''s management does not plan to make further acquisitions in Romania for the time being, though this possibility is not ruled out in the future.
Cargill started operating in Romania in 1996, as a broker for grain exports.
On the vegetal oil market, estimated at 220 million litres annually, Cargill competes with another US group, Bunge, as well as domestic players such as Argus Constanta, Expur Urziceni, Ultex Tandarei, Agricover Buzau and Prutul Galati.
Cargill in Romania
* Will start re-branding all the companies it acquired in Romania
* Estimates turnover will rise by 20%, to 120m euros this year
* Announced an investment programme worth $5m (3.9m euros) to modernise the silo network and the vegetal oil plant in Podari this year
* Has spent around $60m (48m euros) on acquisitions over the last ten years
* Has 46 silos and grain storage units, with a capacity of around 1 million metric tonnes.
dana.ciriperu@zf.ro
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