January 24, 2006

Smithfield foods makes formal entry into Romania

American company Smithfield Foods announced Monday plans to invest RON2.5 billion (US$863million) to expand its operations in Romania over the next five years.

Smithfield Foods is one of the world's largest hog producer and pork processor with sales exceeding US$11 billion last year.

The move will help meet growing demand for pork in the country, Romania's councillor for agriculture, Achim Irimescu said. Half the pork consumed in Romania is imported and consumption grew by 10 percent on-year in 2005. As the Romanian economy continues to grow and living standards are raised, pork will become even more popular, he said.

Smithfield has plans to develop a chain of pig farms located in western Romania and is expected to invest RON820m (US$277 million) in Romania by the end of the year. All profits obtained would be reinvested in Romania over the next ten years.

In March 2004, Smithfield entered the Romanian market after buying and investing in several meat processing companies.

Smithfield owns subsidiaries in France, Poland and the UK and operates joint ventures in Mexico, China and Spain.