Villa Clara province, Caibarién district
Following several years of negotiations Proxenta enters the Cuban market as a foreign investor and establishes a joint venture with the Cuban party.The subject of the investment will be the upgrade of the existing state-owned plant for sweets production Confitería Caibarién situated in the industrial zone in Caibarién district in the Cuban province Villa Clara.
The demand for sweets products on the Cuban market represents about 20,000 tons.Due to insufficient domestic production about 61 percent, i.e. about 12,000 tons of the demand are covered by products from export.The long-term objective of the Cuban government is replacing the sweets import by a domestic production while ensuring required range of products and quality.
The production of the state-owned plant Confitería Caibarien started in 1975 and it was ended in 1976.The technologies were bought in 1970-ies and 1980-ies, which means that today they are highly obsolete and worn and torn.The condition requires replacing the technologies by more efficient and modern equipment.The Cuban Government decided to upgrade the production by means of a foreign partner, with which it would establish a joint venture.The partner will be Proxenta, and both parties have signed memorandum in this respect.This year, new partnership will be established on a contract basis and approved by the Ministers Council.The contract will be signed for the period of 25 years.
The company will produce and supply the market with:
- biscuits filled with custard;
- sweets (hard);
- sweets (soft);
- sweet treats – characters (with icing).
The form and scope of upgrade are set in an extensive study.It is currently updated and the update should be completed in autumn this year, however, the version from March 2015 mentioned a purchase of the following technological equipment:
- a production line for waffles production with the capacity of 2 tons in 8-hour shift;
- a production line for the production of soft sweets – with the sweets size of about 4 – 5 g with appropriate cover – a pack for various sizes, the line capacity will be about 2 tons in 8-hour shift;
- a production line for the production of hard and filled sweets with the required production capacity of 2 tons in 8-hour shift;
- a production line for the production sweet biscuits, sweet biscuits filled with custard and sponge biscuits with icing, with the production capacity of about 4 tons in 8-hour shift;
- a production line for icing of sponge-biscuit characters and waffles by chocolate with the production capacity of 2 tons in 8-hour shift.
When the production is on using 100 percent of installed capacities, it will achieve almost 10,000 tons of sweets, which will provide for replacing 83 percent of the present volume of import.
The production plant is situated in a site with the total area of 8,620 m2.The plant counts with moving to a three-shift operation with about 250 employees.In addition to new jobs and self-sufficiency of the Cuban sweets industry the company will also ensure the demand for domestic Cuban raw materials such as sugar, salt, cocoa and flour.
The Confitería Caibarien project represents an entry to the Cuban market for Proxenta.If both parties assess the cooperation as beneficial, Proxenta is ready to develop cooperation with Cuba also in the future either in the form of production extension, entry to the tourist sector or other form.However, to achieve that it is first needed to manage well the pilot project and deepen the mutual trust and friendship with Cuban party.
Project type: Food production
Area: provincia Villa Clara, okres Caibarién
Status: On-going project