Ovidiu Wencz, the general manager of Tabco-Campofrio, one of the top five charcuterie producers on the domestic market, says the second production facility of the group, located close to Bucharest, will primarily target the capital city market, which accounts for 30-40% in total sales.
Tabco-Campofrio charcuterie producer, the domestic arm of Campofrio Alimentacion of Spain, will start production in the second plant of the group located outside Bucharest, close to Buftea, in 2008. Investments in the new facility will amount to around 12 million euros.
"We bought around 4 hectares of land between Buftea and Crevedia, where we are going to build an 8,000 square metre plant and a warehouse. We hope a significant part of processing capacities will be operational in the first quarter of 2008," says Wencz.
Wencz specified the new plant would have a production capacity of 22,000 tonnes a year. At present, in Tulcea Campofrio manufactures around 14,000 tonnes of meat products per year.
"The plant will have the big advantage of exploiting the capital city market, accounting for around 30-40% of total sales derived by a food industry producer. The moment the plant becomes operational, we shall be able to double sales in Bucharest," adds Wencz.
He said production must be backed by marketing activities. "We shall not have this market for free, we shall have to gain it," said Wencz.
The Bucharest market currently weighs around 20% in the company's turnover, with the largest sales being derived in Transylvania.
The general manager of Campofrio did not offer any details on the number of employees of the new plant, but specified he would make relocation offers to part of the employees working in the plant in Tulcea.
Wencz says the decision to invest in a new plant was made some time ago and is based on rising consumption and the inability of the Tulcea plant to ensure an efficient capacity expansion. Wencz said, though, the plant of Tulcea would not be closed.
Campofrio manager said promotion budgets have surged by at least 20% in recent years.
Campofrio in the first half of this year derived 10% higher sales compared with the same period of last year.
The company puts this year's turnover at 40 million euros, from 33 million euros posted in 2005. Wencz specified the company this year aims to retain the 5-8% profitability index registered last year.
Wencz specified 2005 was one of the best years for Campofrio since it entered the domestic market owing to market stability and to investments in marketing and distribution.
Campofrio last year gave up imports of pig carcass, after developing its own farms.
The company owns two pig farms in Fantanele and Sibioara, Constanta county.
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