The manager gave up the position he had held for five years during which he developed the domestic operations of the US food giant that made several acquisitions propelling it to the leading position on the Romanian market.
“This was my decision. There were some differences of vision related to the business,” Robert Arsene told ZIARUL FINANCIAR. He chose not to reveal any further information.
Arsene, 40, had run the Romanian branch of the US company since 2001. Until a new general manager is appointed, Gabriel Karpf, a Bunge regional manager for Romania, Bulgaria and Hungary, will be the interim manager. Last year was a very difficult time for the edible oil industry amid the appreciation of the domestic currency and the reorientation of many small producers toward the domestic market, promoting lower prices. Most major producers reported weaker financial figures than in 2004. Even though volumes delivered onto the market were larger than in the previous year, profit rates went down.
Bunge in mid last year decided to close Muntenia Bucharest edible oil plant, explaining this decision by its intention to improve activity efficiency. According to the company”s representatives, Muntenia plant”s costs were 200,000 euros higher than those linked to the other two plants of the group, Interoil Oradea and Unirea Iasi. The plant would have required investments worth above 15 million dollars (12m euros) to become efficient, a project deemed as unprofitable considering difficulties the entire industry had been coping with over the past year.
The company carried out quite a complex restructuring programme. At the moment it was closed, the plant had around 230 employees, of whom 200 were caught in the restructuring process. Bunge Romania did not drop any of its brands after it closed the plant in Bucharest, and production was taken over by the other two facilities of the group. The company”s main brands are Unisol, Floriol, Muntenia, Horea and Raza Soarelui.
After ceasing production operations (August 2005), the plant was used as a logistic base until the General Meeting of Shareholders decided to sell the land and buildings.
Muntenia edible oil plant is located in Bucharest over a 6-hectare area.
The US giant late last year decided to sell the land and buildings and real estate market sources stated the value of the land was likely to be as high 15 million euros.
The domestic branch of the US giant projected turnover worth around 120 million euros for last year, 20% higher than in 2004. Last year, Bunge”s turnover derived from the protein and cereal trade operations of its agribusiness segment soared, especially in the wake of silo acquisition.
The investments Bunge made last year exceeded 5 million dollars (4.1 million euros).