Ulker to further team up with financial institutions

Ender Bolat, general manager of biscuit producer Ulker Romania, says the decision to expand to other sectors of the food industry will be made only together with the financial partners.

“In case we want to launch a new product category, or even a new plant, the decision will rest will all the partners,” says Ender Bolat, general manager of Eurex Alimentare, the production unit of Ulker in Romania. Ulker, the biggest company in the Turkish food industry, has so far sealed two partnerships to finance the 23 million-dollar (19 million-euro) investment in Romania, with the European Bank for Reconstruction and Development (EBRD) and the German Investment and Development Company (DEG).

“Ulker quite often receives such partnership proposals for various markets, and the company has financial partnerships (EBRD or DEG) and regional partnerships to expand production in markets where the company is not present, yet,” says the general manager.

With regard to the setting up of the partnership with DEG, Bolat specified the initiative came from the part of the German company. “It was their initiative. They contacted our group in Turkey for a partnership,” explained Bolat.

He also said the partnership was sealed, but has not become operational in the sense of the Romanian legislation.

“The partnership with DEG is a financing source, an alternative that does not influence the operational segment, but impacts the decisional one. The influence of partners is especially felt when it comes to strategic decisions,” says Ender Bolat.

In the wake of the 3.8 million-euro capital contribution, DEG owns 40% in the new production unit, while the plant”s operations are still run by Ulker group.

The general manager of the biscuit producer says Romania will become an export base for the European Union as the company is considering an expansion to other food industry sectors. The 10-hectare plot of land owned by Ulker in Popesti-Leordeni, allows for a subsequent development of the business. “We will add other product categories beside biscuits,” says Bolat.

The Ulker plant already holds three operational lines, with a capacity of 12,000 tonnes of biscuits annually and another line for biscuits to be added.

dana.ciriperu@zf.ro