Milling and bakery producer Pan Group, based in Craiova, which posted turnover worth 23 million euros in 2006, estimates exports will account for 10% of the company's turnover next year, i.e. 2.7 million euros.
"In 2007, exports accounted for about 5-7% of the company's business, but next year we want to introduce our products onto the Czech and Dutch market, which would bring the percentage of exports to around 10% of the turnover," said Florin Busuioc, general manager and vice-president of Pan Group's Board of Directors.
Pan Group products are sold in Romania, as well as in Hungary, Slovenia, Germany, Croatia, the Republic of Moldova and Bulgaria, with most of these markets being tapped into this year.
In 2007, Pan Group conducted investments worth 3 million euros in the retooling process, and in increasing production and packaging capacities. In the course of this year, the producer has also taken out a 1.5 million-euro loan from BRD Societe Generale, thus increasing the company's credit to 12 million euros.
"The credit will be used to upgrade the production capacity for rolled cake and other cake varieties, with the investment to start this year and be completed next year, in March. The investment was necessary, as our growing sales prompt us to upgrade the packaging capacity and improve our technology flow," says the company's general manager.
The group's 2008 investments will revolve around 3 million euros, and will be directed towards building a new logistic warehouse, which will cover 1,000 square metres, and a refrigerating warehouse for cake varieties which will cover around 400 square metres. In the first 11 months of this year, Pan Group saw a 10% turnover increase against the same time last year, a growth rate predicted for the full-year, as well.
"Unfortunately, this year, the price of wheat doubled in just 4 months, vegetable fats became 30% more expensive, while all the other ingredients apart from sugar also saw significant price increases," said Busuioc.
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