Business News

Žito Opens New Mills in Maribor

Maribor, 03 October (STA) - Bread and pasta producer Žito launched on Wednesday its modernised mills in Maribor, concluding a EUR 3m investment. According to CEO Janez Bojc this is one of the company's biggest projects in a decade.

"Having our mills in one location will further our production synergies, which are extremely important from a strategic point of view as well, as this way our group is becoming the granary of Slovenia," Bojc said.

He highlighted the move meant lower costs of services and operational costs.

According to Bojc, Žito bought 25,000 tonnes of wheat from Slovenian producers this year, which is the most in Slovenia.

The group's sales revenues stood at some EUR 54m in the first six months of 2012, while its loss amounted to EUR 377,000, mostly due to an increase in prices of grain and other raw materials.

Bojc plans to cut operating costs and save some EUR 2m by the end of the year to end the year in the black.

The company has been gradually moving from its present location in Ljubljana's BTC shopping district. So far the attempts of Žito's owners to sell the company failed also because the estimations of the value of the company's real estate in Ljubljana differed significantly.

Bojc said today that this real estate would be sold in a separate auction to make possible future attempts at selling the company easier.

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