Capital!, a weekly magazine in Romania, named Smithfield its “Oskar Capital” award winner a week after the company announced that it would reinvest all profits from its first ten years of activity in Romania back into operations there.

Smithfield will invest $850 million over the next five years with the intention of developing a farm chain for breeding pigs in the three western counties of Arad, Timis and Bihor. This network will allow the company to follow the vertically-integrated model that has made it so successful in the U.S.

Romanian Prime Minister Calin Popescu-Tariceanu said that the investment is welcome as the country tries to establish a stable and transparent business environment.

Smithfield entered the Romanian market in March 2004 after buying the Comtim group and acquiring a majority stake in the meat processing company Agrotovis. It also has a 50 per cent share in the food company Agroalim Distribution.

The Romanian operations have quickly become an integral part of Smithfield’s international plans. During this quarter’s earnings report, chairman and chief executive officer Joseph W. Luter, III cited the country’s accession to the EU as a key to the company’s European strategy.

Smithfield also owns subsidiaries in France, Poland and the United Kingdom and operates joint ventures in Mexico, China and Spain.