Romanian dairy firm Covalact opens new warehouse, eyes EUR 4 mln further investments

Romanian dairy producer Covalact opened a new logistics center in Sfantu Gheorghe, following a EUR 1.1 million investment, and plans to invest a further EUR 4 million in the coming years in expanding production capacity and launching new products.

Its new warehouse has a capacity of over 700 tonnes of products and will serve as the group's logistics hub. Covalact is owned by Sigma Bleyzer and runs two factories in Romania, in Sfantu Gheorghe and Miercurea Ciuc. The group has 55 employees in the two factories and produces over 1,600 tonnes a month in some 80 product varieties. Products launched in the last three years account for 60 percent of Covalact's turnover. Covalact started in 1969 as the dairy company Covasna, became Covalact in 1990, when it was still state-owned. Its privatization ended in 1994 and in 2003 the company signed a contract with Campina to produce its yoghurts in Romania. SigmaBleyzer Southeast European Fund IV took over a majority stake in the company in 2007. The fund took over two other companies in Romania, Primulact and Lactate Harghita and merged them after acquisition. SigmaBleyzer has invested EUR 7 million so far in Covalact. Corina Saceanu, corina@romania-insider.com (photo source: Covalact)