Investments are likely to go beyond EUR15 million.
Dr. Oetker paid EUR1.8 million for the land plot owned by Valea Iasului mayoralty, according to information provided by Nicolae Barbu, mayor of the locality where the German-held group’s plant is located.
Barbu says Dr. Oetker officials stated they would invest EUR15-20 million to build a new production unit, but for the time being the German group has not sent any construction project for authorization to the mayoralty.
The representatives of Dr. Oetker Ro, the Romanian subsidiary of the German group, did not answer ZF’s request for information by edition close. The company’s expansion comes as a rising number of companies have in recent years decided to close down production units.
Dr. Oetker is the biggest tax payer in Valea Iasului, bringing around 1.5 million lei (EUR340,000) to the locality’s budget, namely around 65% of the total. The food additive plant currently employs some 350 people. The new plant is likely to double current production and create 200-250 new jobs, according to Nicolae Barbu’s estimates.
Dr. Oetker, with EUR55 million in revenue in 2012 (the latest data available), is among the 20 largest companies in Arges county, with Automobile Dacia holding the leading position in the ranking, according to Trade Registry data.
(English version by Catalina Apostoiu)