New PIK Vrbovec factory opened – a greenfield investment worth 1 billion kunas

The Croatian Prime Minister, Dr. Ivo Sanader, and his associates were accompanied by Ivica Todorić, the president of the Agrokor Concern and the Concern’s board members, to ceremoniously open a new meat and meat products factory. The factory, which is located on the same premises as the existing factory in Vrbovec, is Agrokor’s biggest greenfield investment of the last year, worth 1 billion kunas. It covers more than 40,000 m² of new production space.

The new factory, with a capacity to produce 100,000 t/annually of meat and meat products, is one of the biggest meat industries in Europe. Technologically speaking, all of the most modern technological achievements are utilized and the production process is totally automated. This meat industry is one of the most modern in the world. The new factory will increase employment and will respect all the standards of the best European practice. With this investment PIK satisfied the preconditions for the production of meat and meat products according to competitive conditions in the regional market, as well as satisfying the conditions for potentially exporting to the EU. Agrokor took over PIK Vrbovec in 2004 and at that time the factory was producing 8,500 tons and had a total profit of 220 million kunas. Already in the first three years the production capacity was raised to 55,000 tons, and in 2008 the realized income was 1,520 billion kunas, of which 10% was for export. Parallel with investing in the meat industry, during 2008 Agrokor invested in all of its companies in terms of the most modern technology, e.g. in Konzum, Ledo, Jamnica, Zvijezda, Frikom, Dijamant, etc., and also in greenfield investments to build new farms, new storage facilities, distribution centers and more production plants. Also, with these investments Agrokor confirmed that they were sticking to the strategy of seriously investing in core activities and that they were aware that only increasing competition through the creation of new products and the application of new technologies could ensure growth and development in the long run. Besides implementing leading world technology, Agrokor is also investing in the education and training of its employees. The company is constantly applying the best world practice, which is constantly raising the efficacy of its business and they continue to fight the competition.