The company has spent €17m on the expansion project, which sees it adding a new production line and product development kitchen to its Toledo facility. OSI was granted €1.5m in funding from the European Agricultural Guarantee Fund by the regional government in recognition of the company’s “commitment to agricultural development, employment and sustainability”.
OSI invested in a new production hall, shipping and receiving areas, facility supplies storage, refrigerated rooms for waste container storage as well service areas for oil, hot water and nitrogen tanks.
OSI has increased its production capacity for value-added chicken products from 12,000 tons to 24,000 tons annually. The company can now process 45,000 tons of quality beef, pork and chicken products at its factory in Toledo.
“This latest addition will allow for increased production of value-added chicken items as we meet consumer demand for quality protein products,” a spokesperson told FoodNavigator.
As well as expanding its production capacity and investing in innovation infrastructure, OSI has created the new post of product development manager to focus in on NPD.
“Part of this project was the addition of a product development kitchen, along with the new position of product development manager. These will benefit both new product development as well as continuous improvement of existing products,” the spokesperson explained.
OSI said that by adding new products to its portfolio it will be able to gain foodservice customers and grow “retail key accounts” in Spain and Portugal.
The company said that increased research and development capabilities will enable it to “better service the changing needs of clients and consumers”.
Meeting growing demand
OSI stressed that it is seeing increased demand for poultry products in the region.
"This plant extension is in response to the fast-growing demand for chicken products in Spain and Portugal,” said José María del Río, managing director of OSI Spain.
“Demand for chicken items in this area has seen more than 6% average annual growth over the last decade and 8% average annual growth for the last three years. We are anticipating continued growth of this demand, and we are ready for it,” he explained.