March 2, 2007

Sweden's Konsum Varmland to invest US$2.8 million for new meat plant
 

Swedish retail cooperative group Konsum Varmland said on February 27, it would invest between 20 million Swedish crowns (US$2.8 million /2.2 million euro) and 25 million crowns (US$3.6 million/ 2.7 million euro) in a new meat plant in Kil, western Sweden, following a major order from local grocery retailer Coop Sverige AB.

The plant is due to start operating on April 1, 2007 and is estimated to generate annual sales of some 130 million crowns (US$18.5 million /14 million euro).

Konsum Varmland has leased some 4,000-square meter of land and will employ about 20.

The group will relocate part of its production from the Karlstad plant, also in western Sweden, to Kil. The Karlstad unit employs 160.

Konsum Varmland is owned by its 127,000 members and has a staff of some 1,700. Its subsidiary Pekas has nine discount stores of the XL-Mat and MaxiMat brand. The group had net sales of 2.9 billion crowns (US$413.7 million/312.8 million euro) in 2005.