`ACESUR Invests €10M in 2010 - Olive Oil Times

ACESUR Invests €10M in 2010

Jun. 7, 2010
Daniel Williams

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Spanish Olive Oil Giant ACESUR Invests 10 Million Euros in 2010 In Spite of Industry Woes

ACESUR (Southern Oils), a lead­ing group within the Spanish olive oil sec­tor which exports olive-based prod­ucts to more than 70 coun­tries around the world, is adding to the aggres­sive invest­ment cam­paign it has been wag­ing for the past two years. The ACESUR group has pre­sented a pro­posal to spend some addi­tional 10 mil­lion Euros in 2010 in a plan designed to mod­ern­ize the pro­duc­tion process, make improve­ments in its olive oil bot­tling fac­to­ries and ini­ti­ate changes to its elec­tric co-gen­er­a­tive plants designed to improve effi­ciency and out­put.

The improve­ments in these co-gen­er­a­tive plants will fur­ther increase out­put by max­i­miz­ing util­ity through the recy­cling of energy and in the last years this move towards sus­tain­able energy has been the object of a 37 mil­lion euro invest­ment plan. Of this fig­ure, 25 mil­lion Euros were devoted to a new biodiesel plant sit­u­ated in Tarancón which was inau­gu­rated in 2009.

This incred­i­ble invest­ment plan from Spain’s third-largest bot­tler of olive oil con­trasts with the poor sit­u­a­tion of the olive oil sec­tor at present which is attrib­ut­able to epic falls in prices in 2009. The olive oil cri­sis hit ACESUR hard­est in this year and the com­pany lost some 350 mil­lion Euros. At home, it lost more than 17% of its nation sales (220 mil­lion Euros) while gains from exports dropped 9% and lost the com­pany some 130 mil­lion Euros in sales.

Due to these record losses ACESUR is improv­ing the out­put and effi­ciency of its fac­to­ries at home and cur­rently under­go­ing aggres­sive efforts to inter­na­tion­al­ize. At the end of 2009, ACESUR acquired the Portuguese oil brand Mesmo” as the first step in a strat­egy to dom­i­nate the Portuguese mar­ket. Additionally it bought another 50% of the Syrian group EMOC (The East Mediterranean Olive Oil Company) from the Saudi holder Ben Ladem, thereby gain­ing full own­er­ship of the sub­sidiary com­pany. EMOC already has its own olive oil fac­tory and refin­ery and will be used by the ACESUR group as a plat­form for its expan­sion into the Arab mar­ket. EMOC is already the lead­ing olive oil pro­duc­ing group in the Syrian mar­ket and has recently expanded its pro­duc­tion to include sun­flower and corn oils.

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