During the final stages of integration into the European Union, many foreign companies have been researching the local dairy market over the last few years, establishing their development strategies. The German company Meggle, Europe's number one producer of butter, viewed over 14 dairy plants but ultimately chose not make an acquisition. What are the reasons for that? Too high prices for old factories, lacking a strong brand.
After testing the waters for a few years, the German group opened a Romanian branch in mid-October, to manage its marketing, as well as its commercial activities. Not interested in starting production of their own, the Germans at Meggle announced they would intensify imports as of next year, backed by the abolishment of customs duties for dairy products among other things.
Whereas Meggle did not sign any acquisition deal, although it was in talks with several local companies, the Danish white cheese producer Nordex Food has recently closed a transaction for the acquisition of a dairy plant in Campulung.
The seller, local producer Lactag, owns two other plants in Pitesti and Costesti. However, the Campulung-based facility is the smallest of the three, covering 3,500 square metres and with a production capacity of 400 tonnes a month. The Danes estimate they will need to hire 20 people.
Keld Pedersen, manager of Denmark-based Nordex Food said the acquisition made in Romania is part of the company's strategy to develop on the Eastern European market. The Danes picked Romania because it is one of the biggest markets in the Balkans, while also providing significant development opportunities on the domestic market. For the time being, the Campulung plant is under renovation, so that new equipment can be installed, and Nordex says it is too early to think of further acquisitions. Nordex Foods Romania will start production in
