Unilever to move ice cream factory from Bulgaria to Romania
Anglo-Dutch multinational Unilever, one of the largest players in the food and non-food consumer goods market, is closing its ice cream factory in Veliko Tarnovo, Bulgaria, and moving part of the production to Romania, in Suceava, according to Ziarul Financiar.
The move comes just a few months after Unilever announced that it would separate its ice cream business from the other divisions, allowing it to operate independently. This decision also follows the division’s underwhelming performance.
Unilever has five main divisions - Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. The Ice Cream division, which is expected to be separated by 2025, generates nearly EUR 8 billion in annual sales.
The closest Unilever ice cream factory to Veliko Tarnovo is in Suceava, Romania.
"The production relocation process started a year and a half ago when the decision was made to close the factory. In April 2025, the Veliko Tarnovo unit will be permanently shut down," a market source stated for Ziarul Financiar. The same source noted that the Bulgarian unit lacked modern technology and struggled with staffing.
"The volumes produced in Bulgaria will be redistributed within this network, which also includes the Betty Ice factory in Suceava," company officials said. "The Suceava factory is the only one in Romania that is part of Unilever's ice cream production network."
The group also has a spice factory locally, in Prahova, where it recently invested several tens of millions of euros.
The Romanian factory in Suceava is significantly larger and more technologically advanced.
At the beginning of 2018, the Anglo-Dutch giant acquired Betty Ice, the Suceava-based ice cream business, from entrepreneur Vasile Armenean for approximately EUR 80 million, according to ZF data at the time. At that moment, Unilever had no ice cream production in Romania - only import and distribution.
Last year, company officials announced that they had invested EUR 12 million in the Suceava factory over the past four years. Furthermore, the group plans additional investments of around EUR 4 million for the 2024-2025 period. Unilever also has ice cream production facilities in Hungary and Poland.
Unilever’s move from Bulgaria to Romania was also commended by Romanian prime minister Marcel Ciolacu.
"Attracting significant foreign investments is a priority for this year. I am happy that yesterday, a foreign company announced the relocation of its factory from Bulgaria to Romania. Every investor we win is essential for the economy," said Ciolacu.
"Next week, I will discuss with the heads of major American investment funds interested in our country. There are clear signals that the strategic partnership with the United States is entering the new economic dimension agreed with President Trump at the end of last year," he continued.
(Photo source: J P | Dreamstime.com)
