Setting up a business in a new geographical area especially an international one can be very risky but most businesses still view it as a worthy risk. However, it is always wise in the field of business to carry out research on that place and do some considerations. For instance, Spain is one of the European countries that hauled behind when other countries in the continent were overcoming the recession period. However, despite the economic crisis in the country, there are numerous unexpected benefits such as well-developed infrastructure, the presence of a globalized market and improved business strategies. OSI Industries is one of the companies in the United States that saw the brighter side of the country and went ahead to establish their business in Spain.
OSI Industries acquired a new food facility in Toledo, Spain with the aim of increasing chicken production in the region. According to José María del Río, the managing director of OSI Food Solutions in Spain, demand for chicken products had increased tremendously both in Portugal and Spain. He remarked that the demand had reached a growth of 6 percent per annum a few years ago, but it has grown further to 8 percent every year for the past three years. Being positive that the trend will continue he highly supported the acquisition of the new plant in Toledo.
The new plant line lies on a 22,600 square feet space holding a new product development kitchen that is expected to help fulfill the diverse needs and preferences of customers. Other facilities held in it include refrigerated rooms designed to store waste containers, an employee lounge, shipping and receiving areas, supply storage area and a production area. David McDonald serves at OSI Industries as the COO, and he said that the new facility in Spain would help the company to increase their food products and services. He also said that this is a development that will enhance the growth and reputation of the company at large and benefit residents through the creation of employment opportunities.
The facility in Toledo Spain is expected to double chicken processing and increase chicken products from 12,000 tons per year to 24,000 tons. This growth in capacity is expected to meet the increasing demand for chicken products in the country. Also, with this production capacity, OSI Industries will increase its total production of pork, chicken and beef products combined to about 45,000 tons. The company had previously employed 140 people, but with the new production line, twenty more people will join the team including a new product development manager. Other companies may view Spain as a risky business region to venture in but based on the success of OSI Industries in the country, all is not lost, and any business can flourish as long as due diligence is applied in the process.