Zaharul Oradea, part of Germany''s Cristal Union group, announced investments of approximately 10 million euros for this year, targeting a project related to energy saving and cost reductions.
The 10 million euros come as a continuation of last year''s investments, which stood at 2 million euros and were also aimed at cutting energy consumption and the modernisation of production capacities.
"We are preparing for the competition that will be on this market after Romania''s integration into the European Union," stated Corneliu Pentilescu, general manager of Oradea-based plant.
In recent years, the Oradea based company has invested approximately 6 million euros to boost productivity and create new packaging. Moreover, the company raised its capital by 25 million euros at the end of 2005.
The company''s representatives for this year forecast turnover worth 34.5 million euros, 20% higher in comparison to 2005, after projections at the beginning of the year had initially indicated a turnover growth of 10%.
"As a result of the trend the sugar market has registered during this period, notably an increase in prices and in the volume of sales, we had to revise our initial estimations. The Romanian sugar market is, in our opinion an unstable yet developing market," specified Pentilescu.
He added that in the first three months of this year, turnover doubled compared with the similar period last year.
"This is the first year when we have seen a positive progression, as turnover posted for the first three months in 2005, dropped by 13%, compared to the same period of 2004. Until now, no sugar plant in Romania has registered profit because the market was immature, sensitive to cheap imports of white sugar and dominated by the price factor," the manager of Oradea-based plant also said.
The company produces under the Brilliant and Diamant brands, with the former being packaged only in 50 kg sacks and the latter available in 7 different types on the market. "We plan to develop our current product portfolio and we are at present considering several projects," specified Pentilescu.
The company''s main customers are food industry producers, but the company also sells to major supermarket chains.
According to its own estimates, the company accounts for around 14-18% of the market.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
