Food Union Invests 2.7 Million Euro In the Modernization of 3 Production Lines
Source: The DairyNews
Latvia's milk processing and ice cream production giant, Food Union, has entered the final phase of a significant investment project set to redefine its operational landscape. The initiative aims at the extensive modernization of production processes at "Rīgas piena kombināts," the company's pivotal facility, alongside a strategic optimization of manual labor practices.
The ambitious project, launched in early 2023 in collaboration with the "Lauku atbalsta dienests," has witnessed a noteworthy increase in its total value, now standing at an impressive 2.7 million EUR.
Throughout the past year, meticulous efforts were undertaken to select equipment suppliers through European Union-organized public procurement processes. Currently, the majority of the cutting-edge equipment has arrived in Latvia, poised for gradual assembly.
By the first half of 2024, Food Union plans to equip three of its busiest production lines with state-of-the-art automation technology. In the initial phase, the "Food Union" fresh dairy products workshop will see the installation of a 440,000 EUR automatic cream cheese filling, labeling, and palletizing machine. This move is set to significantly expedite the production of the widely popular "Rasa" cream cheese, both domestically and in export markets.
Furthermore, a 701,000 EUR automatic packaging, labeling, and palletizing machine for curd snacks will be installed, enhancing the efficiency of production for the cherished "Kārums" brand in Latvia, Lithuania, and Estonia.
The grand finale involves the installation of an automatic ice cream packaging line, valued at over 1.6 million EUR, at the "Food Union" ice cream competence center. This transformation is expected to revolutionize the packaging process for beloved ice cream brands like "Pols," "Karlsons," and "Ekselence," ensuring faster production and increased availability in stores.
Artūrs Čirjevskis, CEO of the "Food Union" group in Europe and Member of the Board of "Rīgas piena kombināts," expresses the significance of this modernization, stating, "In a modern food production facility, everything, but most importantly, everyone has to contribute to higher productivity. Production equipment must be highly automated and modern to ensure that the filling, labeling, and packaging of products are not only fast but also of high quality and safe. Meanwhile, human resources should be redirected towards tasks that add higher value, such as developing new recipes, servicing technological equipment, and overseeing production processes and product quality control."
Earlier we wrote: PAG Private Equity to acquire Food Union Europe, becoming the majority shareholder
Throughout the past year, meticulous efforts were undertaken to select equipment suppliers through European Union-organized public procurement processes. Currently, the majority of the cutting-edge equipment has arrived in Latvia, poised for gradual assembly.
By the first half of 2024, Food Union plans to equip three of its busiest production lines with state-of-the-art automation technology. In the initial phase, the "Food Union" fresh dairy products workshop will see the installation of a 440,000 EUR automatic cream cheese filling, labeling, and palletizing machine. This move is set to significantly expedite the production of the widely popular "Rasa" cream cheese, both domestically and in export markets.
Furthermore, a 701,000 EUR automatic packaging, labeling, and palletizing machine for curd snacks will be installed, enhancing the efficiency of production for the cherished "Kārums" brand in Latvia, Lithuania, and Estonia.
The grand finale involves the installation of an automatic ice cream packaging line, valued at over 1.6 million EUR, at the "Food Union" ice cream competence center. This transformation is expected to revolutionize the packaging process for beloved ice cream brands like "Pols," "Karlsons," and "Ekselence," ensuring faster production and increased availability in stores.
Artūrs Čirjevskis, CEO of the "Food Union" group in Europe and Member of the Board of "Rīgas piena kombināts," expresses the significance of this modernization, stating, "In a modern food production facility, everything, but most importantly, everyone has to contribute to higher productivity. Production equipment must be highly automated and modern to ensure that the filling, labeling, and packaging of products are not only fast but also of high quality and safe. Meanwhile, human resources should be redirected towards tasks that add higher value, such as developing new recipes, servicing technological equipment, and overseeing production processes and product quality control."
Earlier we wrote: PAG Private Equity to acquire Food Union Europe, becoming the majority shareholder
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