TSM looks towards mergers to become diary giant

If the group is created, then it will have annual sales of over zł. 200 million and will become one of the tenth largest milk companies. "Consolidation would allow the new entity to secure a huge capital injection and to cut costs," said TSM president Tadeusz Walczak. He added that the merger should not be delayed, as after EU accession, domestic companies will have to compete with powerful European concerns. "If we want to be competitive, then we have to follow the examples of Mlekovita and Mlekpol," said Walczak. The management and supervisory boards of four milk companies are discussing the merger idea. "TSM would be a good partner for us, but we want guarantees that production and employment levels will be maintained," said Ewa Świtajska, the president of Świecie dairy. She stressed that the final decision will depend on the opinion of local farmers who have the option of blocking the transactions. (Puls Biznesu, p. 8) M.M.