Bunge relocates oil factory to Romania from Bulgaria

Romania thus becomes a strategic hub for the operations of both companies in the Balkans. The decisions by Bunge and Unilever were made because their production units in Dobric were not complying with EU and environmental regulations, according to market sources. Moreover, the investments needed to bring the units to EU standards were too high, and even lower wages in Bulgaria did not justify remaining in that country.
Another reason for Bunge’s oil factory being relocated to Romania is poor financial performance and limited opportunities provided by the Bulgarian market. Some 200 employees are likely to lose their jobs at the Dobric factory, according to data on the market.
The U.S. company bought the Bulgarian factory in 2002 and produced the Kaliakra oil brand. Officials at the Dobric factory said Bunge will keep its grain storage facilities in Bulgaria.
Initial rumors said the Bulgarian oil production unit was to be transferred to Hungary and Ukraine. Bunge also entered Romania in 2002, following the acquisition of the Unirea Iasi oil factory. A year later, it bought majority share packages for oil producers Muntenia Bucuresti and Interoil Oradea. Earlier this year, in March, Agricover Buzau announced it planned to sell its oil production division, which includes a factory, its oil brands, and sales and distribution networks to Bunge.
Bunge had closed its Bucharest production unit in 2005 due to poor financial results.
The local oil market amounts to some 250,000 tons per year, worth about €200 million. Main producers are Bunge, Argus Constanta, Cargill Romania, Uvex tandarei and Ulerom Vaslui. 

Factories
Bunge entered Romania in 2002, following the acquisition of the Unirea Iasi oil factory. A year later, it bought majority share packages for oil producers Muntenia Bucuresti and Interoil Oradea. Earlier this year, in March, Agricover Buzau announced it planned to sell its oil production division, which includes a factory, its oil brands, and sales and distribution networks to Bunge. Bunge had closed its Bucharest production unit in 2005 due to poor financial results.