Reinert announces 15m-euro factory

German processed meats producer Reinert, whose sales reached 300 million euros last year, has decided to enter the Romanian market by starting a 15 million euro investment in a production facility near Brasov.

“We have recently bought an 8.5 hectare plot of land in Feldioara commune, 12 kilometres north of Brasov. Construction works on a new factory are to begin at the end of the summer. The initial investment will reach approximately 15 million euros and we will create 200 jobs. As for the second construction phase, we plan to double production capacity in 2007,” stated Peter Rieckborn, the manager of the factory that is to be built near Brasov. The construction works are scheduled for completion next summer.

Sources in the processed meats business say the Germans” entry on the Romanian market is closely connected to the opening of the first Kaufland supermarkets, for which Reinert will be working.

The same sources say Reinert was Kaufland”s main bargaining chip during its negotiations with the domestic producers of processed meats.

Sorin Minea, the chairman of the Romanian Meat Association (ARC), an organisation that comprises the main players on this market, says Reinert”s entry on the Romanian processed meats market cannot be considered tightly connected to Kaufland”s offensive.

“Kaufland will build its own processed meats factory in Romania, which will likely happen next year. At the same time they may work with Reinert,” Minea says.