Atria entered Swedens poultry market through Lagerbergs buy

Atria entered Sweden's poultry market through Lagerbergs buy

Atria, the Finland-based meat processor, has announced plans to invest in the Swedish poultry business Lagerbergs it acquired in April.

The Atria board has approved EUR14m (US$15.9m) of investment to develop Lagerbergs' operations, including rebuilding and modernising production facilities at the factory in southern Sweden.

Atria said production capacity "will increase significantly", while new chicken rearing facilities will be built near the plant. The project will run into 2018.

The acquisition of Lagerbergs saw Atria enter Sweden's poultry sector. Atria describes Lagerbergs as the "third-largest supplier on the Swedish chicken market".

The deal to buy Lagerbergs came two months after a move by Swedish poultry processor Scandi Standard to buy the businbess was blocked by the country's competition watchdog.

When Atria announced in March it had struck an agreement to buy Lagerbergs, it said demand for white meat in Sweden had "increased steadily in recent years", with retail sales growing 7% in 2015.