October 14 (SeeNews) - Romanian dairy producer Covalact said on Friday it had invested 3 million euro ($3.3 million) in a new production line at its factory in Sfantu Gheorghe, in the countrys's central part.
Following the new investment, the production and packaging capacity for one of its cottage cheese products, Branzica de Casa, will double, Covalact said in a press release.
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The new production line's capacity is 200 tonnes of cheese per month. Its packaging capacity is 11,000 cheese cups per hour.
Covalact was established in 1969 as a state-owned dairy producer and privatized in 1993. It now operates two factories in central Romania, in Sfantu Ghoerghe and Miercurea Ciuc, in which it employs 560 people and produces approximately 2,500 tonnes of dairy products per month.
In 2007, the majority stake in the company was acquired by SigmaBleyzer Southeast European Fund IV, a private equity fund with offices in Texas, USA and throughout Eastern Europe, acquired majority . The fund manages assets valued at approximately $1 billion across six investment vehicles.
In April 2008, the private equity fund acquired, through Covalact, Romanian companies Primulact and Lactate Harghita.
($ = 0.9077 euro)