Tonnies increases investment plan in Spain by 30%
Tonnies decide to expand the plant that is under construction in Calamocha, Spain. As a result, the budget for this investment has been increased by 30% totaling €100 million. The decision was made in a board meeting that was also attended by representatives of the Aragon government. The result will be a larger slaughterhouse, with a workforce that will eventually exceed 1,000 workers, which may lead to having to modify the environmental authorizations issued last year.
In principle, the project envisaged a slaughterhouse of 27,655 square meters built on a plot of 116,535, with a slaughter capacity of 10,000 pigs per day and 912 tons of carcasses. In addition, it is planned to build a wastewater treatment plant with 2,000 cubic meters per day of capacity, while biogas will be produced with the resulting sludge. The goal is to start production in 2023.
Tonnies' decision is not a surprise, considering that Germany is banned for pork exports in several third markets as the country has been hit by African Swine Fever since September 2020. Recently, the virus has reached three pig farms in the state of Brandenburg, closer to the Polish border. This is expected to have an impact on talks between German authorities and their counterparts in Asian countries on resuming pork exports to China, the Philippines, Japan, or Vietnam. From this perspective, Tonnies' decision to move some of its production to another EU member state that has an ASF-free status seems the logical step to increase the company's revenues in the future by securing access to several large export markets.
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