According to a report from BizWatch the move has been made in an effort to preserve the company's present market position and to maintain its competitive edge. The company added that the facility will be the largest poultry processing facility in the country.
Currently the company has a processing capacity of around 24 million chickens a year, but the new facility is expected to more than double that capacity to 50 million.
From January this year the company has been renting a facility in Debrecen, eastern Hungary, which it took over from bankrupt poultry processor Hajdu-Bet Rt. The company says it will continue to rent the facility into 2005, when it is expected that the new facility will be completed.
Hajdu-Bet was the country's second largest processor, and went into liquidation at the beginning of this year with heavy debts. This has opened up the market for poultry in Hungary, at a time when processors are expected to benefit from increased market potential due to the enlargement of Europe. Industry observers believe that competitive production costs will make the export of poultry goods from the accession countries a highly viable option in the coming year.
Last year Bablona increased its revenue by 18 per cent to €160 million compared to the previous year. At the same time the company managed to decrease its 2002 net loss from €20 in 2002 to €11.2 million. The company is targeting a modest profit of €200,000 - €400,000 for 2004.