The joint stock company “Franzeluta” worked out a modernization strategy that was approved at the general assembly of shareholders. The bakery will take out a loan repayable in seven years for buying new equipment and will extend the range of its products from autumn, the company’s director Victor Cojocaru has told IPN.

The director said that last year was profitable for “Franzeluta”. Though losses of about 12 million lei were expected, profit of 1 million lei was calculated at yearend. We want the production of bread to be profitable,” stated Victor Cojocaru.

“Franzeluta” gradually diminishes losses in the production process. In 2011 the losses totaled 47 million lei, while last year they fell to about 16 million lei. The same trend continues this year. The losses in the first four months came to 4.5 million lei, as against 4.8 million lei in the corresponding period last year.

Victor Cojocaru said the company is making effort to maintain bread prices. “The sanitary standards require than all the bread should be packed. We thus aim to achieve this objective. But not all the buyers afford to pay for packing. Thus, we continue to produce unpacked bread through we risk being fined during inspections,” he added.

Several groups of shareholders possess shares in SA “Franzeluta”. The state has a 52% holding, the company’s personnel owns about 18% of shares, while the rest are held by the Chisinau City Hall, the Yeast Factory, several banks and a number of private individuals. The bakery became a joint stock company in 1995, but the shareholders received the first dividends only in 2011.