Tnuva to decide whether to sell activity in Romania or shut down dairy
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Tnuva quits Romania dairy over losses
Cooperative has lost more than $100 million since establishing dairy in 2007
The Tnuva management has decided to withdraw its investment in a dairy in Romania following a renewed evaluation of the situation, the Israeli food cooperative said in a short statement Friday. No additional details were available.
The company will decide in the near future whether to sell its activity in the dairy or shut it down completely.
Financial Reports
Shay Salinas, Calcalist
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Tnuva has lost more than $100 million since the dairy's establishment in 2007. The company's partners in the Romanian dairy are European bank EBRD and businessman Yossi Bueno.
Yedioth Ahronoth economic newspaper, Calcalist, reported last month that the Tnuva management was expected to make a decision on the future of the Romanian dairy – whether to shut it down, sell it or bring in a strategic partner.
Meanwhile, the company's senior management, led by Chairman Shlomo Rodev, toured the dairy.
The Tnuva dairy in Romania was established before the company's controlling interest was sold to the Apax fund and Mivtach Shamir, but its activity in the Eastern European country matched Apax's strategy to turn Tnuva into an international company and set up dairies in additional countries, including India.
These plans were put on hold due to the global financial crisis. In 2009, Tnuva considered selling the dairy, but late gave up on that plan.
