Slovakia: Vamex returns with new strategy

Kosice / SK. (et) Vamex A.S. entered the Slovakian market by investing 500 million SKK in the Kosice bakery and it plans to invest twice as much into the new one. For this year it has planned revenues of up to 480 million SKK. Three years ago Vamex turned the former COOP Jednota hypermarket in Kosice into a large capacity bakery. The company invested heavily in equipment. When looking at his bakery equipment Vladimir Kopanicak, the majority shareholder of Vamex commented that probably no-one else in Slovakia has such a well-equipped bakery. And his company is about to build another one in Western Slovakia.

It will be about 30 percent bigger than the one recently opened in Kosice and will cost about one billion SKK. The businessman from Kosice did not wish to reveal the location of the new bakery. But the company has already received a building permit. The investment will be financed partially from own funds but mainly from bank loans. This is all happening at a time when some companies that were active in the industry in the past are struggling to withstand the downward pressure from retail chains on prices. Their financial situation cannot keep up with the wholesale requirements on listing fees and long payment periods. And they also lack funds for the modernization of their factories.

After the Western Slovakia bakery reaches its full capacity which is expected to be about 33 percent higher than in Kosice, total revenues are planned to exceed one billion SKK which would make Vamex one of the leading trio in the Slovak bakery industry. Its major competitors, international groups Agrofert (CZ) and Delta (CZ), own networks of several bakeries.