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International Internet Magazine. Baltic States news & analytics Tuesday, 23.10.2018, 06:33

Food Union to invest EUR 11.1 mln in development

BC, Riga, 06.12.2017.Print version
Food Union dairy group will invest EUR 11.1 million to build a Centre of Excellence for fresh dairy products over the next two years, reports LETA.

The plans include concentration of production in a single location in Riga, transferring the production of Rigas Piensaimnieks company to the territory of Rigas Piena kombinats, as well as purchase of new production equipment and upgrading of infrastructure, Food Union said.


Next year EUR 2.85 million will be invested in purchase of two new curd snack production lines and one new line for drinking yogurt in new packaging solutions with a purpose of developing production in these categories. EUR 6.25 million will be invested in transfer of production to Rigas Piena kombinats and upgrading of infrastructure, and EUR 2 million will be spent on development of a new and modern production facility.


"On the eve of the 90th anniversary of Rigas Piena kombinats, we announce the reunification of the company that was once divided. Established in 1928 and grown to two production facilities on the right and left bank of the Daugava [River] in 1963, and later divided into two companies in 1990, Rigas Piena kombinats has contributed to the 100-year history of the Latvian state," said Normunds Stanevics, Chairman of the Board of Rigas Piena kombinats.


Arturs Cirjevskis, Member of the Board of Rigas Piensaimnieks, explained that the production of popular curd snacks Karums in the existing production premises had reached its capacity ceiling. "We cannot produce more curd snacks on the existing lines, as well as the development of new products with the existing technologies and in the existing premises is very limited. Meanwhile, the demand for the curd snacks continues to grow both in Latvia and abroad, besides, we see a great potential to develop this category in new formats. Therefore the transfer of curd snacks and other Karums products to new, fresh and spacious premises, as well as an access to the latest technologies will enable us to create innovative products with double capacity to please our customers," he said.


For 2019, the plan is to start the transfer of the entire production of Rigas Piensaimnieks to the newly built Centre of Excellence, thus concentrating both the production of fresh dairy products and ice cream in one place. This will allow the company to make the production processes more efficient, to simplify logistics, to reduce costs in the long term, and to focus more on product innovations. All the work on the development of the Centre of Excellence should be completed at the beginning of 2020.


According to Food Union, the group's total turnover in 2016 was EUR 247 million.


Food Union Group comprises Latvian companies Rigas Piena kombinats, Valmieras Piens, and Rigas Piensaimnieks, Estonian ice cream producer Premia, Danish companies Premier Is ad Hjem Is, Isbjorn Is in Norway, Alpin57Lux in Romania and Ingman Ice Cream in Belarus.

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