Turkish dairy company Sütaş finalizes entry on the Romanian market, buys former Tnuva plant
Turkish dairy firm Sütaş has officially announced its entry to the Romanian market with the acquisition of the former Tnuva dairy plant and the completion of its initial investment. Initially, the Turkish company expects to employ 300 people and will later increase the number to 500 when further investments are completed. Sütaş new dairy plant has a 500 tonnes a day capacity.
“Romania is a significant Balkan country, with its developing economy, European Union membership, and also a major market with over 22-million population,” said the chairman of Sütaş' executive board Muharrem Yılmaz, who added that Romania will suit the company's “grass to table” business model. Yılmaz also suggested that the company hopes to “reach” Central and Eastern Europe with its Romanian operations. Sütaş named breeding farms, a feed factory, recycling and re‐usable energy facilities as possible areas for future investment in Romania.
Sütaş did not include any figures in its announcement on the amount invested in Romania so far, the price paid for the old Tnuva dairy plant nor estimates for future investments. Tnuva, which entered the Romanian market in 2005, could not compete with lower price, imported dairy products, while its production costs were 50 percent higher than those for local dairy products, according to Israeli media.
According to international media, Tnuva invested around EUR 60 million in Romania. Tnuva Romania Dairies posted a turnover of EUR 17 million in 2010 and a net loss of around EUR 16 million. The year before, its losses stood at EUR 22.6 million, while its turnover was of EUR 21 million.
Tnuva had bought a farm in Adunatii Copaceni for EUR 1 million and modernized it, only to close it in March 2011, as it was not profitable.
Sütaş is the largest dairy maker in Turkey, with an annual turnover of EUR 500 million. It recently invested EUR 10 million in the former Swedmilk dairy and plans to relaunch production in May this year. Last year, the Turkish company took over a bankrupt dairy factory in Macedonia.
editor@romania-insider.com
