SeenewsSeenews
Search
Seenews
AlertsSeenewsSeenews
Searchclose
TOPICS
arrow
COUNTRIES
arrow
INDUSTRY
arrow
Economy
arrow
Browse Economy
Mix and match your focus countries with our advanced search
Investments
arrow
Browse Investments
Mix and match your focus countries with our advanced search
Deals
arrow
Browse Deals
Mix and match your focus countries with our advanced search
Tech
arrow
Browse Tech
Mix and match your focus countries with our advanced search
Green
arrow
Browse Green
Mix and match your focus countries with our advanced search
0/5
You have 5 free articles left this month
You have 0/5 free articles
Sign up to get 5 more free articles this month
SIGN UP
arrow
LOGIN
arrow

Lactalis to shut down production plant in Romania - report

Jun 19, 2024, 11:46:56 AMArticle by Alexandru Cristea
share
June 19 (SeeNews) - The Romanian unit of French dairy group Lactalis has decided to close its production unit in Romania's central city of Miercurea Ciuc, in line with a strategic plan to consolidate its local business, Bucharest-based media reported.

Lactalis to shut down production plant in Romania - report
Lactalis

Lactalis will consolidate its future investments in Romania at its production plants in Oiejdea, Sfantu Gheorghe, Campulung Moldovenesc, and Tunari, Economica.net reported last week.

"We want to reaffirm our investment and development commitments in the Romanian market, as part of the Lactalis Group's long-term business strategy. We have invested over 60 million euro ($64.3 million) in the last five years in Romania, and for the current year we have planned investments of over 13 million euro," Lactalis Romania CEO Onur Barim was quoted as saying by Economica.net.

A SeeNews email to Lactalis seeking confirmation of the planned plant closure went unanswered by the time this article was published.

As many as 95 employees working at the Miercurea Ciuc unit will be affected by the collective redundancy measure. Lactalis will provide them with financial compensations as well as counseling for professional reintegration and support for potential retraining. The production plant will continue to function at current parameters until the closure process is finalised.

Lactalis took over the Miercurea Ciuc production unit in 2016, following the acquisition of local dairy producer Covalact from US-based private equity firm SigmaBleyzer for 40 million euro. Lactalis acquired obtained the Sfantu Gheorghe unit as part of the same transaction.

The Lactalis group remains the largest milk collector in Romania, with over 244 million litres of milk collected and processed annually.

The Lactalis Group owns several dairy product brands in Romania, including Albalact, Covalact, Raraul, LaDorna, Fulga, and Zuzu, employing 2,000 people at five factories in the country.

The Romanian companies in the Lactalis Group sell over 220,000 tonnes of finished products every year and cumulatively have a turnover of more than 300 million euro.

In 2020, Lactalis Romania shut down two production units in Floreni and Vatra Dornei.

In 2008, Lactalis took over Romanian dairy company LaDorna from French businessman Jean Valvis for 90 million euro.

Lactalis Group employs 85,500 people and owns 266 plants in 51 countries.

($ = 0.9324 euro)

Your complete guide to the emerging economies of Southeast Europe. From latest news to bespoke research – the big picture at the tip of your fingers.