Swedish Lantmännen injects EUR 10 mln into Romanian subsidiary ahead of EUR 90 mln investment

Swedish agricultural cooperative Lantmännen, which produces buns for McDonald's in Romania, increased the capital of the local subsidiary Lantmännen Unibake with RON 50 million (EUR 10 million) ahead of a large-size investment project worth EUR 90 million, Profit.ro reported. Following the operation, the share capital rose some five times to RON 62 million (EUR 12.5 million).

The project envisaged by Lantmännen in Romania consists of three new production lines (besides the existing one) and is aimed to quadruple the subsidiary's turnover to EUR 100 million.

The investor applied for a state grant in the amount of just over EUR 25 million.

Lantmännen Unibake produces buns in Romania for McDonald's and other players in the HoReCa industry. Another sales channel is retail – all major international chains present in Romania buy Unibake products and resell them either under their own brand or the manufacturer's brand.

Also, part of the production is delivered to foreign markets, a share that can increase, with the development of new production lines, to 25-30%.

(Photo source: Press.lantmannen.com)