De Cecco announces new investments to expand its presence in Russia

The Italian pasta maker doesn't fear Russian market and plans to relaunch investments
De Cecco announces new investments to expand its presence in Russia

The Italian premium pasta maker De Cecco has closed the financial year with a remarkable jump in revenues, resulting from a right investment plan of about 40 million euros,  which allowed the company to increase its production capacity. In addition, the company has in its portfolio other 37 million euros, thanks to a recent agreement signed with Invitalia, a sum which is pending to be invested.

“We are expecting another important growth in revenues next year – said president Filippo Antonio De Cecco –, especially we are targeting Russia market. We don’t fear, on the contrary we are much more confident. We are preparing by improving quality food standards to meet demand coming from local brands. Russian brands, indeed, are becoming increasingly interested in our pasta’s range of products. For example the Russian company Extra M has set out an internal reorganization”.

In 2011 De Cecco bought Extra M,  the Russian company that accounts this time, for about 15% of Russian pasta makers, the world fourth largest.  Last year the Russian subsidiary has acquired two other firms: 1-st Pasta, Saomi Ojsc and 1-Petersburgskaya. Sales increased of more than 30% in volumes but only 15% in value, because of the negative currency’ run.  Revenues in Russia has reached 40 million euros and the country ranks third, after US and UK, in the De Cecco export’s main  markets.

Last year the amount of 40 million euros of the Italian company have been invested in a new watermill (10 million) and in two new productive lines for dried  pasta (both short and long items). The result was a jump in the production’s output which recorded 2,4 million tons. On the other side, the export’s rate remained the same, that is to say the 30% of profit, compared to the previous year. Recently De Cecco has appointed Marco Fenili who is  in charge to oversee foreign markets, developing a strategic plan in order to gain  market shares more.

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