Cargill is expanding its animal nutrition footprint in Romania through a major investment in its feed plant in Sura Mica near the town of Sibiu, including the construction of a complete-feed production line within the current premix facility.
The project also comprises an upgrade to the existing mixing system, the installation of a pelleting line, and the addition of a warehouse to store finished products.
The construction process has already begun and is expected to be completed by summer 2010.
Since its acquisition of LNB Feed International BV in 2007, Cargill has produced premixes, concentrates, and complete feeds at the Sura Mica site.
The new pelleting line will allow Cargill to manufacture pelleted feed in both bag and bulk form, and the project will result in an increased capacity of nearly 50,000 metric tonnes per year.
Meanwhile, the enlarged warehouse will have 1,500 pallet locations for bagged products.
The facility employs about 45 people and the new investments could potentially create up to 15 more jobs in the future.
More meat, more feed
"In recent years, there has been a significant increase in meat protein production in Central and Eastern Europe, and we expect this trend to continue," said Maarten Welten, general manager of Cargill's animal nutrition business in Romania and Hungary.
"Romania is an important growing market within the animal nutrition sector and has much potential in the years ahead.
“We are confident this investment will bring significant benefits for our customers in local farming communities for many years to come."
Cargill's animal nutrition business currently sells and distributes its products under the Purina and LNB brands in Romania.
In Eastern Europe, the company has marketed the Purina brand in Hungary for more than 15 years and will apply this knowledge to expanding the brand in the Romanian feed market.