ZF English

Transavia builds new factory despite bird flu

11.01.2006, 20:02 7

Transavia Alba Iulia, one of the top chicken producers in Romania, owned by businessman Ioan Popa, will invest 10 million euros this year to expand its production and processing capacities. "We will build a new meat processing plant near Alba Iulia and will focus on boosting production capacity. We will also take our company investment policy further, partly by finalising works in progress," stated Ioan Popa, who is also the company''s general manager.

He specified the company this year plans to reach a production capacity of 50,000 tonnes of meat per annum.

"We are aiming for the leading position among chicken producers in Romania," added Ioan Popa. At present, the company''s processing capacity stands at 25,000 tonnes annually.

"We ended the year 2005 with a profit of 6 million dollars (4.8m euros) and we hit all the targets we set for the past year," Popa also said.

According to information presented by the company, Transavia generated turnover worth 40 million euros last year, double the value registered in 2004. The company''s representatives explain that this increase was due to the finalisation of investments standing at 12 million euros for the construction of a new slaughterhouse, the launch of production under the company''s own brand, and in particular to collaboration with major retail chains, accounting for over 90% of the company''s sales in Alba Iulia.

The company''s representatives maintain they did not see any sales slump following the emergence of the first cases of avian flu in Romania. "Consumers have more confidence in the producers from Transylvania and Banat," Popa stated.

For this year, Transavia representatives chose not to offer any estimates regarding turnover, mainly owing to market instability. "We cannot provide any projections, yet. We are waiting to see the evolution of the market during the first quarter of this year and we will make some assessment," Popa continued. Last year, the company invested around 7 million euros to boost chicken rearing capacities, to expand the mixed fodder plant located close to Alba Iulia, and to get the necessary licences for export activities.

"This month we will start exporting to the Netherlands and Germany," Popa explained.

Over 70% of Transavia''s monthly production is comprised of refrigerated products and only 30% are frozen goods. "This year, we want to increase the quantity of refrigerated meat delivered onto the market and to become a market leader for this type of meat," Popa also said.

Currently, the company has the capacity to raise 1,700,000 chickens at a time, getting some 80 tonnes of chicken per day, while the total production capacity stands at 50,000 tonnes per year.



Transavia Alba Iulia

* Reported double turnover last year, to 40m euros

* Will invest 10m euros to expand production and processing capacity this year

* Plans to reach a production capacity of 50,000 tonnes of meat per annum in 2006

* Ended 2005 with profit of 6 million dollars, met all targets set for the past year

* No sales slump amid the emergence of the first cases of bird flu

* Did not release any estimations for this year''s turnover.

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