Smithfield Foods, the US pork meat industry giant, will invest around 800 million dollars in Romania over the next five years to secure a strategic position on the domestic and European markets, Michael Cole, Smithfield''s VP in charge of acquisitions, told Ziarul Financiar.
The company is seeking to buy new businesses to complete its Romanian-based portfolio.
"Our purpose is to create the most powerful pork meat producer in Romania and to turn it into a major player on the European market in 2007, when Romania joins the European Union. Romania has a core position within our European strategy," Cole said.
Smithfield''s official estimates that Romania will come to lead the European food industry over the following years, given its abundance of natural resources and strategic geographical position, as well as the size of its agricultural workforce.
The US giant entered the domestic market in March 2004 after buying certain assets belonging to the former pig breeding complex Comtim Timisoara, the biggest meat producer and processor in the region before 1990.
Smithfield has so far invested $80m by taking over and modernising the assets of Comtim, and by acquiring a 50% stake in distribution company Agroalim Distribution and in the refrigeration warehouse Frigorifer Tulcea, both of them owned by businessman Mounir Halawani.
The Americans are interested in building an integrated portfolio on the Romanian market. According to Michael Cole, Smithfield Romania will further expand its pork processing operations through strategic acquisitions of companies that are active on the market.
Smithfield is interested in purchasing some local brands, but the company''s representative would not name the respective companies.
Smithfield already owns 22% in Spanish producer Campofrio, which is also present on the Romanian market.
The US giant will also invest in the modernisation of the Freidorf and Beregsau slaughterhouses.
Smithfield will organise two distinct entities, one in the pork processing sector, Smithfield Carne (to operate slaughterhouses, to handle the sale and distribution of fresh and processed pork products), and the other in pig breeding - Noul Comtim, to supply Smithfield Carne with the necessary raw material.
Cole maintains that the development of Smithfield''s operations would have significant economic effects over Timis and the neighbouring counties.
Smithfield will become a major consumer of fodder, grain and other raw materials, as well as of services delivered by local farmers and suppliers. adrian.mirsanu@zf.ro
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