The Bucharest-based charcuterie producer Meda, which posted turnover worth 18 million euros in 2006, plans to complete an investment programme topping 5.4 million euros this year, for the construction of a new charcuterie factory, says Florin Rizea, general manager of Meda Prod Bucharest.

"The total investment is estimated at approximately 5.4 million euros, from which 1.2 million euros will be secured by Sapard funding. The rest of the money needed for investment will be raised through our own resources, by means of reinvesting profit and contracting a banking loan," said Florin Rizea.

So far the business has been entirely supported by the shareholders' own capital as well as by a Sapard funding programme worth 4 million euros, which started in 2004, but now the company may resort to a banking loan for the first time.

Meda has used the Sapard programme's funding to develop investment in two stages. The first stage, worth 1.6 million euros, has already been completed, while the second stage, worth 2.4 million euros started last June and is currently underway. Investment in the second stage of development will be used to expand the existing production capacity by adding a 4,000 square metre annex to the plant. "After we finish this investment, which we are developing with the help of the Sapard programme, our total capacity will increase by approximately 60%," said Luchi Georgescu, manager of Meda, and of wine producer Vincon Vrancea.

According to information released by the company, Meda's production capacity amounted to over 6000 tonnes in 2006.

"Our investment plans will not stop there. We may need more funding in the future because we want to build another factory in order to keep boosting production capacity and diversifying our products," stated Rizea.

The company plans to start the construction of a new facility that will pro