In 2017, the Sheldon Lavin-led OSI industries made public their intention to acquire a chicken products processing plant in Toledo, Spain. However, what started as yet another move on a larger global acquisition strategy has turned out to the company’s most promising unit in Europe. With the backing of statistics about impending market statistics, OSI has invested over €17 million in this plant. This has more than tripled its production capacity and attracted. But why the emphasis on this poultry plant? Here are some the reasons the company has invested heavily in the Toledo plant:
Increased demand for chicken products
Toledo plant specializes in the production of chicken products. At the time of acquisition by OSI Industries, the plant would process close to 12,000 tons of chicken products with the expansion pushing this to over 24,000. Overall, the refurbished plant can now process over 45,000 tons of meat.
According to OSI, the expansion was informed by an increased demand for chicken products in the region. It states that the average 6% increase in demand for chicken products reported over the last decade shot to 8% in the last three years. The food processor expects this trend to persist and refurbishing the plant is in effect a step towards getting ready for the increased demand.
OSI industries management is all about quality foods, timely distribution of products, and environmental conservation. There was, therefore, a need to refurbish the plant in a bid to ensure that it aligned with these expansionary and sustainability goals. Some of the key expansion projects undertaken within the plant included the construction of a 22,600 square foot building for logistical support as well as new factory equipment that reduce electricity consumption by 20 percent.
A base for the region’s meat market
While Toledo Plant may be predominantly chicken products oriented, OSI Industries hopes to use it as their base to access region’s meat market. This explains the recent introduction of pork and beef products processing and distribution from the plant. Having these products processed at the facility goes a long way in reducing overheads when compared to importing them from such other OSI processing plants like U.K’s creative foods or Germany’s Baho,
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