Turkish dairy producer Sutaş took over the former factory of Israeli dairy firm Tnuva, which filed for bankruptcy in Romania last year. The factory in Popesti Leordeni had been taken over by a local businessman, according to Ziarul Financiar. The Turkish dairy maker will reportedly re-open the factory after modernizing it and re-start production in 2013.
Tnuva, which entered the Romanian market in 2005, could not compete with lower price, imported dairy products, while its production costs were 50 percent higher than those for local dairy products, according to Israeli media.
According to international media, Tnuva invested around EUR 60 million in Romania. Tnuva Romania Dairies posted a turnover of EUR 17 million in 2010 and a net loss of around EUR 16 million. The year before, its losses stood at EUR 22.6 million, while its turnover was of EUR 21 million.
Tnuva had bought a farm in Adunatii Copaceni for EUR 1 million and modernized it, only to close it in March 2011, as it was not profitable.
Sutas is the largest dairy maker in Turkey, with an annual turnover of EUR 500 million. It recently invested EUR 10 million in the former Swedmilk dairy and plans to relaunch production in May this year. Last year, the Turkish company took over a bankrupt dairy factory in Macedonia.
(photo source: Sutas)