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Sigma Alimentos, the parent company of Spanish meat producer Campofrío, has unveiled its investment plan aimed at restoring and enhancing production capacity in Spain after the Torrente facility in Valencia was severely damaged by a hurricane in October 2024.

The initiative involves an estimated total investment of €157 million, which includes the construction of a new processed-meat plant in Utiel, Valencia, at a cost of €134 million, and an additional €23 million earmarked for capacity expansions at Campofrío’s Burgos facility. The new Utiel plant is set to replace the Torrente site, which employed over 300 workers prior to the disaster.

The company will also invest €23 million in its 'La Bureba' facility, situated in the Castilla y León region – a vital production site for Sigma, specialising in the manufacturing of high-quality processed meats. The planned capacity expansion will improve operational efficiency at La Bureba, ensuring it can adapt to changing market needs while upholding Sigma's commitment to quality and safety.

Key details of the recovery plan

New packaged meats plant: Sigma will construct a new packaged meats plant in Valencia, with an estimated investment of €134 million.

Capacity expansion at La Bureba: An additional €23 million will be allocated for capacity expansion at the La Bureba facility in Castilla y León.

Funding: The projects will be largely funded through insurance reimbursements, along with expected government incentives.

Operational timeline: The recovered production capacity is expected to be fully operational by 2027.

Funding for these projects will primarily come from insurance reimbursements, supplemented by expected government incentives. The new facilities are anticipated to be operational by 2027, allowing Campofrío to better adapt to evolving consumer demands for processed meats.

In a statement, Sigma highlighted its commitment to its workforce, reaffirming support for the employees affected by the Torrente facility's closure. The recovery plan is designed not only to restore lost production capabilities but also to enhance operational efficiency and flexibility, aligning with broader efforts to improve profitability in a competitive market.

Sigma's European division, which includes Campofrío, reported a revenue of $2.28 billion in 2024, a slight decline of 3% from the previous year, while EBITDA increased significantly due to structural efficiencies. With operations across 17 countries and a diverse portfolio that includes over 100 brands, Campofrío remains a critical component of Sigma's strategy to strengthen its presence in the European food and beverage sector.

Image credit: Sampol