Bunge readies Polish oilseed production
newly acquired oilseed processing facility in southern Poland.
Bunge says that, tying in with Poland's accession to the EU, the
facility represents a strategic move into the company's vertical
integration strategy.
The plant, located in Brzeg, was formerly operated by Polish margarine manufacturer Kama foods. However Kama Foods went bankrupt and the facility has been lying idle for the past two years.
Bunge said that, in recognising a good investment opportunity, it formed Ewico in June this year and with the help of other Polish investors it bought up all the debts and assets of Kama Foods for a total sum of PLN 81 million (€18.4m). Kama Foods debts were said to amount to more than PLN 400 million, a sum that Ewico has agreed to undertake under the deal. Ewico is now planning to relaunch production under the Kama Foods brand name.
A company spokesperson for Bunge said that test production had already started and that the ramp up to full production will now follow on from that. Currently rape seed harvests are in full swing in the region, coinciding with the resumption of production. It is expected that the plant will crush around 300,000 tons of seed per annum.
"The plant was idle for nearly two years therefore the investments were focused on the maintanace, upgrade, safety protection and necessary repairs which would allow for the start up this month," the spokesperson told CEE-FoodIndustry.com. "There have been no investments to increase the production capacity and the plant will continue to process rape seeds coming from local suppliers."
Strategically the acquisition of Kama Foods is a good fit for Bunge's ambitions to increase its footprint in the central and eastern European region - an ambition it is actively working to achieve at present.
"The acquisition of the Brzeg facility by Ewico, will strengthen the positon of Bunge in Poland as well as in the region, a factor that is made even more pertinent now that Poland has joined the EU. The Brzeg plant is integrated - having crushing, refining and margarine production lines, so it fits Bunge strategy of vertical integration."
As well as supplying the domestic market, the investment is also expected to increase Bunge's reach in the European Union, which will be a secondary target for the production.
In Europe Bunge is a leading producer of bottled edible oils to the consumer market as well as bulk and packaged oils to food processors and foodservice customers. In eastern Europe it has operations in Romania, Bulgaria, Russia, Ukraine and Hungary.
