Canada gains ground in food processing expansions A Period of Consolidation What Factors Go Into Investment Decisions? Scattered U.S. Activity Canada: A Vigorous Market Europe: Growth East and West Request Information |
Europe:
New food and beverage investment in Western Europe is focused on nations like France, the United Kingdom, Spain and Belgium -- although most projects are moderate to small in scope. While the United Kingdom topped the list of new and expanded food processing facilities in 1998, France moved into first place last year. "The big news is that the position of the United Kingdom and France has been reversed to a significant extent," says Barry Bright, director of International Location Advisory Services for Ernst & Young in London. "The substantial depreciation of the Euro against the pound sterling has eliminated much of the UK's previous cost advantage, and France has many natural attractions as a food manufacturing base. Locating projects in France or Belgium allows easy access to the wider European market." The Benelux region is another natural location for companies wishing to serve a European clientele. Haust BV, known as Continental Bakeries, is building a $25 million plant in the Netherlands to produce Dutch rucks and other toast products "Our new production facilities are extremely streamlined," says J.J.F.M. van Dooren, managing director. "We have two older plants in the middle of densely populated urban areas. Both of those properties sit on valuable real estate. By selling the land, we can build a new facility." In Eastern Europe, new investment is occurring in Hungary, the Czech Republic, Slovakia, Russia and the Ukraine. For instance, Kraft Jacobs Suchard recently announced a new coffee production factory in Leningrad. Scheduled to be built in 2001, the plant will eventually produce 8,000 tons of coffee annually, taking advantage of Russia's labor costs.
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