The Vaslui-based Vascar company, one of the medium-sized players on the meat products market, will invest over 3.5 million euros to modernise the plant in Vaslui.
"In the wake of this investment project, the area of distribution will be expanded, export activities will be launched, costs will be reduced and profitability will rise," says Rita Carmen Popa, marketing manager of the company.
In order to implement the investment, the company will receive Sapard financing worth 1.7 million euros.
"The project is aimed at rallying to environment protection norms in line with European Union standards, as well as to the highest food safety standards," the company''s representatives also said.
Vascar last year registered turnover worth 17.9 million RON (5 million euros), up 26% from 2004.
The company''s sales are largely made in the Moldova area. "We have our own network of 12 stores in Vaslui, Husi and Iasi," the company''s marketing manager commented.
Last year, the company launched a nationwide distribution programme, and as a direct result, sealed partnerships with distributors operating in counties outside of Moldova.
At the end of last year, the company''s distribution network covered around 80% of Romania''s territory.
According to company data, Vascar last year manufactured almost 1,100 tonnes of meat products, double the quantity posted in 2004. The company also produces canned meat products.
"We planned to boost our brand awareness nationwide, setting up partnerships with hypermarkets and with cash & carry stores," says Popa.
The company was set up in 1968, and in 1991 it was privatised. Vascar has 180 employees.
Last year, the market of processed pork products amounted to 600 million euros. Four of the top five players on the charcuterie market are family businesses: Cristim Bucharest, Aldis Calarasi, Angst and Caroli. The only player that is part of an international group is Tabco-Campofrio, owned by Spain''s Campofrio Alimentacion.
One of the most significant trends the market has witnessed over recent years is that the weight of the small producers in the total production is diminishing. While major producers accounted for 50% of the market in 2004, they reached 60% last year, with the growth of large producers estimated to speed up after EU integration, as the small producers do not make investments to comply with European regulations.
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