The year 2008 was marked by “tough decisions” of large international players such as Kraft Foods, Coca Cola HBC, or Colgate Palmolive, who decided to outsource their production lines in countries like Bulgaria and Poland. The workers are the ones who suffer from these outsourcing processes, hundred of unemployed workers, and public actors, who don’t understand aspects such as the role of local and regional community in drawing and keeping an important investor or involving authorities in stimulating a field affected by relocation.
First sign of production outsourcing in FMCG, visible since 2007
Bunge, one of the most important players in vegetable oil market in Romania, was closing down oil factory at Kaliakra (Bulgaria) and was outsourcing its upstream activities in Romania.
Bunge invested some 25 million euros last year in retooling the factory it held in Brasov, where it transferred the oil production from Iasi-based facility, which was shut down. The reorganization plan included the concentration of all operations of crushing, grinding and bottling that Bunge conducts in Romania, at Buzau.
Chosen because of its proximity to the most important sunflower-cropped region and to Constanta seaport, Buzau-based factory has a good strategic position due to its proximity to Bucharest and border with Bulgaria.
Active in Romania since 2002, American-based Bunge group acquired the oil factory in Buzau and its trademarked brands in March last year from Agricover.
As for Unilever, the company was informing its workers in March last year on the board’s decision to relocate the production of Kaliakra brand from Bulgaria in Romania. The decision was part of the company’s plan to concentrate its production activities in strategic locations, capable of supporting long-term growth.
After this decision, the production activities of Dobrich-ba
