Vel Pitar moves plants outside Bucharest

Broadhurst investment fund, owner of the milling and bakery producer Vel Pitar, has decided to relocate its Bucharest plants and mill outside the city, to the south of the capital. Vel Pitar’s decision comes at a time when another leading bread producer in Bucharest, Lujerul Bucuresti, is in talks to sell a 3.5-hectare plot, located close to Plaza Romania mall, in a deal that could amount to 60 million euros. Vel Pitar, which generally derives an annual turnover worth over 130 million euros, owns a mill in Rahova and two plants in Berceni and Rahova, which cover a total surface area of 48,424 square metres, according to information available on the company’s website. However, Vel Pitar representatives did not wish to provide details on the prospective sale of these plots. “We have a plot in South of Bucharest, and the mill will be the first asset which will be relocated,” said George Frincu, chairman of Vel Pitar’s Board of Directors. The relocation will start in the second half of the year, and will be completed by the end of 2009, or by the beginning of 2010 at the latest. Vel Pitar will direct a large portion of its 5.5 million-euro investment planned for this period towards this move.