Brenac to invest 25 million dollars by 2005

Parametru, the company producing Prim and Brenac dairy, intends to invest more than 2 million dollars in its Romanian-based plants this year. The money will aim at dairy production upgrading, Sotirios Anyfiotis, Parametru SRL general manager, told Ziarul Financiar.

The company has invested about 8 million dollars in Romania so far, beside the 5 million dollars initially invested in 1992 and the 25 million dollars to be invested over the next five years.

Parametru, a Romanian-Greek joint venture, is the first dairy manufacturer in Romania using Bactofuge technology, the most modern method to sterilise the milk, company officials say.

The company hopes to benefit from SAPARD investment funds this year, but, even if it is not possible, it will maintain the 25 million-dollar investment programme by 2005.

Parametru registered 11 million dollars in turnover last year, against 10 million dollars in 1999. The company plans 15 million dollars in sales and 2 million dollars in profit this year.

“Our profits have not soared, as Romanians’ purchasing power is quite low and we preferred to offer them goods at accessible prices in order to create a segment of loyal consumers.

Quality products need high manufacturing costs, but gaining consumer loyalty to this brand and increasing sales will allow Parametru to become a profitable business,” Anyfiotis said.

The company has 500 employees and 11 plants in Romania. Four of them are located in Botosani, three are located in Braila, one is at Urleasca and the other three are based in Salaj.

Parametru produces and distributes 28 products under Brenac trademark, which is divided in two large classes: fresh products, valid between 1 and 6 days, and cheese products, whose validity spreads over 6-12 months.

Consumers belong to urban regions, namely cities having more than 150,000 inhabitants, and have average and above average incomes.