‘Lucky find’ prompts investment in Gothenburg
Half a year ago Irish company McCaughey Foods had its eyes on processing equipment being sold in Gothenburg. They bought the equipment. Instead of transporting it back to Ireland as planned, they launched a business. Production will soon be in full swing.
Michael Liddle, the company’s operations director, has been in regular contact with our investment advisor Helen Bairu since the summer. He tells us more about their new venture in Sweden and shares his experience of investing in Gothenburg.
What kind of operation are you setting up in Gothenburg?
“We are setting up a company for the production of ready to eat, cooked chicken products, initially for export back to our food business in Ireland, where we produce and sell cooked turkey, chicken and beef products for foodservice and retail customers.”
“We are making an existing food factory in Mölnlycke, Gothenburg, suitable for our production needs. We expect to be in full production early in 2024.”
This is your first investment outside of Ireland. Why did you choose Gothenburg?
“Strange as it might seem, the decision to invest in Gothenburg was prompted by a lucky find, in the processing equipment that was already in situ, and the realisation that we could make more effective use of it in Gothenburg, than by transporting it back to Ireland to put into production there.”
“Expansion of our existing operation in Ireland has been on the cards for some time. A new factory beside our existing one has been in the design and planning process for the past 18 months. Construction is expected to take 2-3 years, so the opportunity to expand our capacity quickly in the interim was too good to miss. Of course, the positive reception we received in the area was a great help.”
What potential do you see in the region long-term?
“While our initial business model was based on using our existing EU chicken supply chain, which has the advantage of being closer to Sweden than Ireland, and our existing Irish and UK customer base, we can see potential in supplying finished product in the local market.”
“In Sweden, just like Ireland, there is strong cultural support for locally produced food products. We hope to bring our experience in adding value to locally farmed chicken to Mölnlycke, and to present the finished product to our new home market, as well as in Ireland, UK and continental Europe.”
What are your thoughts on setting up operations here, in terms of the process and your contact with the city/public authorities?
“The wide use of English has certainly been an advantage when navigating the route to setting up a business here. We have learned with the benefit of hindsight that July is not the best month to start the process, but even during the summer months the help from Business Region Göteborg, Härryda Municipality, the Swedish Food Agency [Livsmedelsverket] and our own Enterprise Ireland team has been invaluable.”
“At an operational level it is often the ´who should I talk to about electricity, recycling, building, tax, regulations´ questions that are most difficult. The world wide web is a wonderful resource, but its greatest value has been putting us in touch with the local business development teams and their help.”
What are your thoughts on doing business in Sweden so far?
“So far, the experience has been positive. The factory is close to the airport with direct flights to Dublin twice a week, which helps. We haven’t been here very long, and we’re not yet in production so it’s difficult give a full answer to this question, but our team has been impressed with the inherent quality of buildings, infrastructure and services, with the presentation in retail and with the culture of sustainability.”
About McCaughey Foods
The company produces a range of chicken, turkey and beef products for sale mainly in the Irish foodservice market, but more recently in the retail sector, and in the UK market. It currently has 130 staff at two sites in Ireland. It expects to employ around 20 staff at its new processing site in Mölnlycke, Gothenburg.
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