03/22/2021 CORPORATE

Atlantic Grupa invests in new Argeta factory near Varaždin

Modern production facility equipped to the highest technology standards to be built in the Kneginec business zone, creating up to 150 new jobs.

Spurred on by outstanding business development and business growth plans in the category of Savoury Spreads, Atlantic Grupa has decided to invest in the construction of a new factory for products under the Argeta brand, to be built in the municipality of Kneginec near Varaždin. The investment, at a total value of EUR 50 million, is underway with the realisation of the land acquisition and shall proceed in several stages, with the new production facility set to become operational within 15 months of obtaining a building permit. Up to 150 new jobs are planned to be created once all stages of the project are realised.

The factory and the related infrastructure will be constructed on a 41,000 m
2 land purchased in the Kneginec business zone, and the new production facility will operate in line with the highest technology standards in the food industry and to the highest principles of environmental protection. The Kneginec business zone was selected as the preferred option, based on a number of criteria such as geographical location, appropriate transport connections and well-developed infrastructure, availability of qualified workforce, as well as benefits on production activities. 

Savoury Spreads as the main category in terms of strategy

 Atlantic Grupa currently operates two modern factories for the production of Argeta spreads – in Izola, Slovenia and in Hadžići, BH, and has set up service production in Harrisburg, USA for the US and Canadian markets. Growth and plans for expansion of operations relating to spreads as one of the main categories of Atlantic Grupa have led to a need for additional production capacity building. Strategic Business Unit (SBU) Savoury Spreads accounts for 15.9 % of the total sales revenues of Atlantic Grupa and records a two-digit growth year after year. Even in the extremely challenging year of 2020, this unit recorded a remarkable growth of 15.1 % compared to the previous year. According to data published by Nielsen, Argeta is the European leader in the category of meat pâtés, as well as a firm leader in Austria, Switzerland, Slovenia, Croatia, BH, Macedonia and Kosovo, whilst enjoying a significant presence and growth in other countries in the EU and globally.