Three contenders for Plevnei

Three of the top five names in the milling and bakery industry, Vel Pitar, Boromir Ind Valcea and businessman Adrian Porumboiu, are currently competing for the acquisition of one of the few large “independent” bread factories in Bucharest, Plevnei SA, industry sources say. The move will either introduce to the Bucharest market two major milling and bakery players that have developed strong businesses throughout the country, or it will consolidate the position on the market of one of the largest player, Vel Pitar, which already owns two similar facilities in Bucharest. Vel Pitar and Dobrogea Group are the only major players operating on the Bucharest milling and bakery market. Plevnei SA is owned by the Employee Association and is being sold because of cash flow problems caused by the grain shortage last year when the grain price skyrocketed. The Bucharest-based producer created 6 million euros in turnover last year, while its total debt was more than 8 million euros and its net losses were in excess of 200,000 euros. ZF