Ursus Won't Close Any More Plants

05.20.2011 ZF English

Gary Whitlie, chairman of Ursus Breweries, the biggest player in the Romanian beer industry, is waiting to open in the next few weeks a mini-brewery on the location of a plant that the company closed last year and says the group isn't planning to shut down any of the remaining three operational plants.

"Production of the Ursus brand has largely been moved to Brasov and Timisoara. In Cluj we will produce enough to supply the area," Whitlie told ZF.

In November 2010, the producer closed the Cluj plant, whose operating costs were high. However, Ursus volumes in the Cluj area went up between January and March 2011. The new production facility in Cluj requires EUR1.1 million in investments.

Previously, the group had also closed the Azuga production facility. Asked if he was considering selling the Azuga assets, Whitlie answered such a decision was being contemplated.

At the beginning of the year, Violeta Moraru said she was interested in buying the assets of the former plant, which she and her husband Valerii Moraru sold to Ursus. The transaction was concluded in 2009 and amounted to EUR10 million. At present, the Moraru family is developing the Azuga Waters business, which owns the Perla Covasnei brand and others.

Ursus Breweries, which has brands such as Timisoreana, Ciucas, Stejar, Azuga, Redd's, Peroni Nastro Azzurro, Grolsch, Miller and Pilsner Urquell, recorded an 8% decline in volumes sold between April 2010 and March 2011, according to a report of SABMiller, which owns the Romanian brewer.