Charcuterie producer Fox Bucharest, which derived turnover worth some 20 million euros in 2006, intends to invest 5 million euros in a new charcuterie factory this year, which is expected to boost the production capacity by 50 tonnes per day, says Cornel Vulpe, shareholder of Fox.
"The production capacity of the current factory amounts to 30 tonnes per day. We will start the construction works on the second factory this year, which will be located near the one we already own, and which will have a production capacity of 50 tonnes per day," said Cornel Vulpe, shareholder of Fox.
Through this investment, the company's representatives aim to increase the production capacity, to diversify the range products, to expand the coverage on the local market, as well as to enter new markets.
Most of the major players in the charcuterie industry aim to expand the production capacity so as to increase their market share and fill the void left by some local players that exited the market because their production facilities do not meet the EU standards.
Thus, the market leader CrisTim plans to reach a production capacity of 300 tonnes per day by 2010, while Aldis CalarasI last year reached a production capacity of 100 tonnes per day.
The new production centre owned by Fox, with a total surface area of 55,000 square metres, will be built through banking loans, as well as through structural funding dedicated to the food industry, which will cover half of the investment's value. According to the company representatives, the investment will be possible to amortise over the following five years.
"We intend to reach a production capacity of 80 tonnes in early 2008, so as to develop a nationwide distribution network," Vulpe also said.
Fox shareholders decided to set up their own distribution company in 2006, Fox Com Serv Distribution, which current
