Meggle invests RSD 210 million in Kragujevac-based Mladost dairy in 2011

German company Meggle announced today that it would invest over RSD 210 million in the development of Kragujevac-based Mladost dairy in 2011. The company from Germany bought Mladost from Belgrade-based Silbo in December 2010.

Meggle today officially took over the dairy in Kragujevac by signing a takeover agreement. At a press conference that followed the signing ceremony, Meggle Director Sil van der Ploeg did not want to reveal the price paid for that dairy.

He pointed out that the acquisition of the dairy in Kragujevac was a logical step in the expansion of Meggle's activities in the region.

The Kragujevac-based dairy will now operate under the name of Meggle Srbija and the new owner plans to enrich the current product portfolio of Mladost with Meggle products, which will also be exported to neighboring countries, primarily to the markets of Montenegro and Macedonia.

As it was announced today, the plan is to increase the capacity and the purchase of raw materials by minimum 110% over the next three years in order to provide a high-quality raw material base in the region, while the plan also include activities aimed at improving the milk production.

According to the words of Sil van der Ploeg, Meggle has been offering its products to the market of Serbia through Belgrade-based Silbo for more than 10 years.

Mr. Ploeg said that the company Meggle had over 2,000 employees and the annual revenue of EUR 750 million.

Mladost dairy, of which daily production capacity is 80,000 liters of milk, today produces 60,000 liters of milk a day and employs 100 people in the production sector. It was founded in 1954 as a public company. Due to unsuccessful first privatization, the worst period for the company was between 1997 and 2004. The company Silbo bought the 70.01% stake in that dairy from the Share Fund in 2004.