Austria’s Gerlinger is planning to acquire insolvent Serbian meat processor Mitros.
Should the takeover come through, the firm aims to re-launch production of pig meat products at the Serbian facility this year and take on about 350 workers, reported local news daily Vecernje Novosti.
Under the plan, in the first phase of the investment, the Serbian facility will process about 1,000 head per week. The price of the planned acquisition was not disclosed.
Mitros operated a meat processing plant in Sremska Mitrovica, in Serbia’s northern region. The city is located about 75km from the Serbian capital Belgrade.
“Gerlinger is a reliable partner, and I believe that Mitros will soon start to process meat and produce meat products again. The Austrians want to purchase the Mitros brand and launch production as soon as possible,” said Mayor of Sremska Mitrovica Branislav Nedimović. “Gerlinger has already filed a motion to the commercial court.”
The firm specialised in processing pork, as well as poultry and beef products. Local stakeholders said the planned takeover by Gerlinger could significantly increase demand for local pig meat, according to Nedimović.
The investment “would result in an increase in pig breeding, providing work to many people in rural areas”, the mayor said.
In 2005, the insolvent meat processing company was purchased by local firm Swiss Lion, owned by Serbian businessman Rodoljub Draskovic. The plant became insolvent in 2009, and laid off about 940 workers. In 2012, the facility was put up for sale for €5.2 million, but the company’s liquidator was not able to find an investor for the 39,000sq m production facility.
Prior to filing for insolvency, the firm had a 10% share of the Serbian processed meat market, according to data from the state-run Privatisation Agency (AZP).
The meat processor’s product portfolio included sausages, bacon and canned meat. In addition to the domestic market, Mitros exported its output to 18 foreign markets, accounting for up to 14% of its total sales.
Source GlobalMeat
