Kraft Europe rejected the sale of its factory

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Kraft Europe rejected the sale of its factory Maó Group Emcorr

F. F. Saborit Maó

After four months of negotiations, the multinational Kraft has declined to sell the factory Mahón andalusia Emcorr Group, chaired by the investor Catalan Josep Xicola and in August 2008 acquired the real estate network Fincas Corral, when he was on the verge of collapse due the crisis in the sector.

According to the director general yesterday Emcorr, Joan Battle, the group formed by a conglomerate of 170 companies from the sectors housing, food, fashion and packaging, is willing to purchase the plant or even rent Maó to continue producing and maintaining the existing template. Battle said that the mark was left out of the hamlet of negotiation from the outset, as Kraft wants to keep his property, although it "would have pulled ahead with another name."

Battle has personally led the talks with Pilar Marchan, head of legal department of Kraft Europe. Yesterday said the director general of Emcorr, his proposal was to assume all the debts that exist in today's factory Mahón and the likelihood of continuity and maintenance of all jobs. The final amount that are being considered for the operation has not transpired, but Battle said that in addition to the amount of ships and the debts of the factory is a small difference for the production that can be generated. "

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Kraft maintains that the plant must sacrifice Mahón

M. Angeles Obispo Bishop

The address European Kraft returned yesterday to justify the works of the factory closure of Mao for their loss of profitability and market share, and that their sacrifice is the only solution to save the cheese division of the company is the old continent, as explained yesterday by the Spanish representative at the European Committee and secretary of Kraft of the works of the factory Minorcan Margot Sastre.

During the reunion of the committees of the various companies European plants every two months to maintain the company's management, held yesterday in Zurich (Switzerland), the multinational reiterated to employees that the factory for less than Mahón 30 percent of production in Europe and its products are sold only in Spain, while the other group that owns the factory in Namur (Belgium) generates over 70 percent of production in Europe, about 40,000 tons, and sell to major markets. In addition, the European government maintained its refusal to sell the brand Caserío considering the strategic and crucial to the Spanish market.

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Nueva Rumasa interested in purchasing El Caserio factory

C.M.W. Maó

The Nueva Rumasa group, owned by the Ruíz Mateos family, has recently shown an interest in purchasing the Kraft plant in Maó. It would appear that the group made an offer for the factory which the multinational company considered to be financially unviable and has rejected for the time being. Negotiations could, however, continue in the future as the group has launched a corporate bonds issue amongst companies in the holding to raise money to buy new companies.

Currently Nueva Rumasa has assets valued at over 3,000 million euros with companies in the food, drinks, tourism and property sectors. The holding comprises 107 companies employing more than 10,000 people directly and 6,000 indirectly. It has trade relations with 78 countries and a turnover in excess of 1,500 million euros. Although involved in various business segments, food and drink form the basis of its activities and the group has already invested in the dairy sector, selling products ranging from desserts to frozen goods; hence the possible interest in acquiring a processed cheese factory.

The Spanish group has already had dealings with Kraft Foods, purchasing the Spanish division of Apis and Fruco from the multinational. This included the company Carcesa and the Mérida, Don Benito and Montijo plants in the province of Badajoz. In this case Kraft agreed to temporarily help the purchaser in various ways in order to ensure a smooth changeover, and Nueva Rumasa undertook to keep on all the workers employed in the factories it had purchased.

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Asturias welcomes the expansion plan of ILAS

F. Saborit Saborit Mahón

The Government of Asturias welcomed the expansion of a local company as dairies Asturianas (ILAS) and the acquisition, if negotiations ultimately thrive with Kraft Foods, the factory that the multinational has Mao. From the Ministry for Rural Affairs and Fisheries yesterday expressed his satisfaction with the growth plans of the signing of Asturias, which has factories in Europe, Asia and America, if that does not involve the relocation of their activity and abolition of posts work in plants that is firm in the Principality.

In the executive details of the Asturian unaware preliminary reached between ILAS and Kraft Foods and argue that this is an agreement between private enterprises "in which the Ministry for Rural Affairs has no bearing. Within the community of northern Spain, dairies has its main production plant in the Council of Valdés, focusing on products and powdered milk as the cheese factories engaged in are, as reported yesterday by the Federation Dairy Producers (Feplac) in Madrid and Zamora. Regarding the possible sale of facilities to ILAS Kraft, the president of Feplac, José Antonio Herrero, said yesterday that the organization keeps track of developments related to the factory Mahón "but we do not yet have reliable information, it is premature anything further. "

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Nueva Rumasa to increase cheese production in Maó

Christine M. Watterson Maó

The Kraft Foods factory in Maó and its employees will pass to Nueva Rumasa on 30th June and the group headed by José María Ruiz-Mateos will formally take possession on 1st July.

The businessman, his son José María Ruiz-Mateos Rivero and directors and workers’ representatives from the subsidiary company Carcesa (the firm which formally signed the purchase agreement) visited the cheese factory on the Maó industrial estate last Friday and met the Kraft management team and union spokesmen. Following the three-hour meeting the visitors toured the factory and held a press conference at which they pronounced themselves very satisfied with the group’s latest acquisition.

The Ruiz-Mateos team presented Kraft management and the works committee with a business and manufacturing plan for the next three years which will reactivate the factory and increase production.

Current production levels of 15,000 tons will be maintained until July 2010 and Nueva Rumasa will work with Kraft to co-manufacture products until the end of this year.

The plan focuses mainly on the production of processed cheese in the form of portions, grated and spreads, as well as mixed cheeses and blocks and also special cheeses aimed at the health sector, a market that the company believes offers great opportunities.

José María Ruiz-Mateos Rivero announced a “very active change in business” with the introduction of new brands through commercial expansion, marketing and advertising plans. The growth plan for the plant will be helped by existing contracts for brands and other brands from the food division of the Nueva Rumasa group. It is also probable that the Maó factory will continue to manufacture some products for Kraft.

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