Tec Miaco, the second largest player in the chicken industry, placed under receivership at the beginning of this year, has launched a restructuring programme in the wake of which it closed some production facilities.
"We have closed the slaughterhouse in Mangalia, we have transferred its entire production to the slaughterhouse in Crevedia and we have halted distribution to certain areas of the country that are a long distance away from our production facilities. We have also closed poultry farms, which were weaker performers," says Marius Iliev, Tec Miaco chairman and owner of 45% of the business.
Following these moves, the monthly production capacity of the group shrank from 2,000 tonnes to 1,500 tonnes. Iliev says he has not and will not sell the closed assets, because he plans to keep them "to allow the company to attract capital".
The group is intensively searching for new investors, after the two investment funds that owned 45% of the business, the Romanian American Enterprise Fund (RAEF) and the Romanian Investment Fund (RIF), sold their stakes to a local investor at the beginning of this year. Iliev was unwilling to make public the name of this local investor. "We are currently in talks with several investors, but I cannot mention their names because talks have not come to an end, yet," Iliev stated.
Tec Miaco registered sales standing at 43 million dollars last year, but expects 30% lower sales this year.
Creditors at the beginning of this year called for Tec Romania to declare insolvency for debts totalling 15-20 million euros. Tec Romania is one of the 5 firms that are part of Tec Miaco.
According to data released by Uniunea Nationala a Crescatorilor de Pasari din Romania (The National Union of Poultry Farmers in Romania-UCPR), the chicken industry was last year rocked by several bankruptcies: Institutul de Cercetari Avicole (The Institute for Poultry Breeding Research) in Balotesti (bought by the La Dorna group), Avicola Oradea, Avicola Botosani and Avicola Suceava.
Chicken farmers' problems surfaced amid the doubling of grain prices internationally.
stelian.negrea@zf.ro
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