Ulker, the biggest Turkish producer in the food industry, is considering expanding domestic production in other sectors of the food industry. The group owns a 10-hectare plot of land in the Popesti-Leordeni, and the current production facility occupies some 20,000 square metres.
"The land we own allows the company to develop along other product categories. It was purchased for this very purpose," stated Ender Bolat, general manager of Eurex Alimentare, the production arm of the Ulker group in Romania.
Bolat chose not to specify the new categories of products Ulker is likely to manufacture locally. Globally, the Turkish group also manufactures dairy products, margarine and edible oil, coffee, soft drinks and ice cream.
Ulker''s investment in the plant based in Popesti-Leordeni amounts to 23 million dollars (19 million euros), with part of funds being released by the European Bank for Reconstruction and Development (8.9 million dollars). To support the investments focusing upon Romania, the group has set up a partnership with the German Investment and Development Company (DEG), which acquired 40% in the Ulker plant, in the wake of a 3.8 million-euro capital increase. The Ulker plant already contains three operational lines, with a capacity of 12,000 tonnes of biscuits annually, and by the end of this month will add another line for biscuits.
"At present, only three production lines are operational, and another five will become functional by yearend. We will also add other product categories," said Bolat.
Domestic production, as well as the enlargement of the product range, will increase Ulker turnover to 20 million dollars (16.5 million euros) this year, from 5 million dollars (4.1 million euros) last year, according to the company''s estimations. "We expect at least triple sales this year, given that we will expand our product range and make solid investments in marketing," says the general manager of Eurex Alimentare.
Bolat also specified investments in Romania have a strategic role, with an impact on Ulker''s business in Europe.
"We will deliver products manufactured in Romania to neighbouring markets, as well as to the West European market," he added. According to Ulker''s representatives, the company will start exporting to Bulgaria this month and will subsequently approach the German market.
"Romania''s EU accession will create a large advantage in terms of the elimination of custom duties for European states. Part of the production exported from Turkey until now will be taken over by the Romanian plant," Bolat explained.
According to the company''s estimations, exports are likely to reach 25%-30% of the total production capacity.
"The entire surplus from the domestic market will be delivered for export," Bolat also said. dana.ciriperu@zf.ro
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