January 18, 2006
Prime Minister Tariceanu meets with Richard J.M Poulson, Executive Vice President of Smithfield Foods, Inc.
On January 18th, Romanian Prime Minister Calin Popescu-Tariceanu met in Bucharest with Richard J.M Poulson, Executive Vice President of Smithfield Foods, Inc. to discuss progress on Smithfield's commitment to invest in Romania $850 million in the next 5 years.
"Investments in Romania are Smithfield 's main priority in the upcoming years," stated Richard Poulson during the meeting with Prime Minister Tariceanu. Smithfield 's investment to date exceeds $200 million and the company plans to surpass $275 million by the end of 2006.
Smithfield also informed the Romanian Prime Minister that farmers program is key to the company's success in Romania . "One of the challenges facing Romanian farmers today is the lack of financing. We are currently working with two of our major financial partners to develop an independent financing program that could be utilized by our contract farmers. Much progress has been made and several financing structures have already emerged as feasible alternatives. We hope to have this financing program in place by the summer of 2006, “Poulson said. Smithfield bought COMTIM (Timis) and plans to develop the farming program in the western part of Romania .
At the end of the meeting with Prime Minister Tariceanu, Richard Poulson stated that Smithfield is pleased and excited to be in Romania and committed to making their investment in Romania a success – for both parties involved. "You have made us feel very welcome here in Romania , where we have found a business-friendly economic environment. From the beginning, we have received the unconditional support and encouragement of the Romanian Government. We applaud the Government's sustained efforts to reform your legal system and fight corruption and the transparent way in which it encourages the interaction with the business environment," Poulson said.
Also, the Smithfield 's Executive Vice President declared: "We believe strongly in your country's potential. It is our goal to create the leading pork company in Romania and to prepare it to be a major player in the European market when Romania joins the European Union less than 12 months from now. Romania will be at the center of our European strategy. Partly because of Romania 's wealth of natural resources and its strategic location, but also because of the availability of a capable workforce eager to support intensive development of the agricultural industry, we foresee that Romania will become Europe 's leading pork producer in the years ahead."
Prime Minister Tariceanu stated that all foreign investments in Romania are welcomed and that measures taken by the Romanian Government in favor of a stable and transparent business environment should help. "The Romanian Government gives equal treatment to all companies and this is an advantage because it encourages competition," Prime Minister Tariceanu said.
Background information:
Based in Smithfield , Virginia , Smithfield Foods, the company that opened in 1936, is the world's largest pork processor and hog producer. Smithfield processes 27 million hogs and raises 14 million annually. Smithfield Foods has made 32 acquisitions since 1981, transforming into a food company with $11.6 billion in annual sales. Outside the United States , Smithfield owns subsidiaries in France , Poland , Romania and the United Kingdom and operates joint ventures in Mexico , China and Spain .
Smithfield came to Romania in 2004 and bought Agrotorvis and Comtim Group, thus becoming the owner of ComTim Timisoara. Smithfield also bought a 50 percent stake in Agroalim Distribution and an equal stake in Frigorifer Tulcea.