"We will not operate at peak capacity in the first year of business, but we hope to work at an at least 60% capacity," said Adrian Gaspar, general manager Scandia. The company currently has 850 employees and does not plan to hire more for the new factory.
The production capacity of the new canned foods facility will stand at 22,000 tonnes a year, 1,000 tonnes more than the current factory. The general manager says it will also make more than 20 tonnes of cold cuts a day. Gaspar estimates that the premium segment of the canned meat products will see one of the highest increases in the near future.
"We estimate more premium products will be bought this year. We expect an up to 3% growth for the sales of canned meat on this segment," Scandia's general manager said.
He added that the profitability margin of the premium segment of canned meat products was a two-digit figure, but failed to mention the exact level, compared with a one-digit profit margin for the products below this segment.
The same single-digit profitability margin is expected for the cold cuts category where the producer will have a bigger presence from next year. "We have yet to define the range of cold cuts, but we are trying to launch a traditional line, which will almost certainly not be positioned among the basic products," he added.As for canned meat prices, Gaspar said they will go up by at least 15% on store shelves at the beginning of next year, due to the increase in the price of raw materials by at least 50% and in packaging by 10% on average.
"Prices for canning increased a great deal this year, which we tried to blur in the end price of the product. Yet, as of November this year, packaging will go up by at least 7% compared with September, which will surely show in the end price of the product," the company's official explained.
The company officials anticipate Scandia to make 50 million euros in revenues from selling canned meat alone, given that the Sibiu-based producer posted almost as much as its entire turnover last year. The general manager added that several investment funds have offered to buy Scandia, but he has not signed any contracts yet. "I think we would rather team up with an investment fund, on the condition that its owns a minority interest. Unless it offered a fabulous amount of money, we would not sell," Gaspar said.
Asked whether he had considered acquisitions on the domestic or international market, he explained that now was not a good time for acquisitions.
"There are alternative choices for us to develop our business. Either we make acquisitions, or boost exports. However, since this is not a good time for acquisitions, we seek to at least double our exports next year. We have not found any synergies for acquisitions on the domestic market," he added.
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