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AdePlast Oradea Plans to Invest EUR 10mln in a Factory in Moldova
The building materials producer AdePlast, owned by businessman Marcel Barbut, plans to invest EUR 10mln in the construction of an industrial production area in Moldova, after, at the end of last week; he opened a polystyrene factory in Ploiesti. "Expanding the production capacities of AdePlast doesn’t stop there. By 2012 we will develop an industrial production area in Moldova", Barbut said. The polystyrene factory in Ploiesti was built with an investment of over EUR 4mln, financed from own sources, and it will have an annual production capacity of 700,000 cubic meters of polystyrene. AdePlast recorded a turnover of RON 127.5mln (EUR 30.3mln) last year and the net profit amounted to RON 13mln (EUR 3mln), according to the Ministry of Finance. The company produces adhesive mortar for ceramic, plasters, screeds, industrial flooring and mechanized mortars, paint and decorative plasters and it is a leading producer of adhesives on the local market, the leading competitors being Henkel (Germany), Baumit (Austria) and Duraziv.(August 29th 2011)

Paint Producers: We Have to Bear Price Increases of Raw Materials
Producers on the paint and varnish market is experiencing an increase of about 15% of the price of raw materials, the Paint Industry Association of Romania (AIVR) warns, which will inevitably lead to increased prices of products needed for housing renovations. Higher prices are due to the increased scarcity of raw materials, amid increasing demand for these materials from other industries than the paint industry, but also from developing markets outside Europe. The costs for raw material are at least 50% of the final costs of the paint and varnish producers, according to the Association. At the same time, the Romanian market of paint fell from more than EUR 330mln in 2008 to less than EUR 250mln in 2010. This situation obliges the paint industry to survive between reducing local consumption, on the one hand, and commodity inflation, on the other. All producers register a reduction in gross margin and, consequently, an erosion of the level of profitability. "On a market where all prices of the components for a construction have fallen, commodity prices in the paint industry increased by 20% in December 2010 compared with December 2009. Paint producers were forced to bear over 10% of the average increase, while they record a reduction in gross margin and, consequently, a decrease in the level of profitability", Zoltan Jakab, Chairman of AIVR, said. Thus, producers of paint and varnish can not replace the raw materials missing or those that have registered significant increases in price with worse quality materials, but neither can they fully absorb such increases. For this reason, they are obliged to transfer some of the costs to the final consumer. The ratio between the level of absorption of increases by producers and that felt by consumers is 50%. Therefore, a while ago, the Romanians have spent about RON 600 to buy necessary products for renovating a three bedroom apartment, now they will have to pay 5-10% more for this operation. (July 6th 2011)

Barbut wants a partner for AdePlast, to take over 30% of the shares
The owner of building materials producer AdePlast, Marcel Barbut, wants to attract an investor in the company, to take over 30% of the shares following a share capital increase by up to EUR 10mln, amount used for building a plant and for acquiring a company in Hungary. “We are in negotiations with someone to bring money in the company. The partner will receive 30% of AdePlast shares after a share capital increase and the money will be used to build an adhesives factory in Moldavia and we will acquire a similar producer from Hungary”, Barbut declared. The operation could be concluded by the end of the year and the value of the share capital increase depends on the results of evaluations, according to the source quoted. Barbut gave no further details, in conditions in which he signed a confidentiality agreement, but estimated that the amount attracted through this operation to be up to EUR 10mln. AdePlast head stated that the price they would pay for the Hungarian company, active in Budapest area, will be of up to EUR 1mln. Related to the development of the new AdePlast plant, which will produce adhesives and will be built in Moldavia, Barbut declared that he could not offer at that time an estimate regarding the total investment value. The building materials producer started in April works on a polystyrene plant in Ploiesti, in which it would invest about EUR 4.5mln. The company currently has two dry mortar plants, in Ploiesti and Oradea. AdePlast also owns in Oradea a paint production unit. (June 6th 2011)

"Akzo Nobel Coating" Romania Plans to Increase Its Turnover by 20%
"Akzo Nobel Coating" Romania, a subsidiary in Romania of the varnish and paint producer Akzo Nobel, estimates that this year it will register a 20% higher turnover compared to last year, when it had sales of about RON 29 million, as Marius Pintea, the company’s Market Manager said Friday. According to him, the turnover decreased in 2010 compared to 2009, by 5%, given that the market has recorded a decline of 15-20%. For the current year, the company’s representative predicts a decrease of the market, but even a slight increase is possible. Matius Pintea specified that, during the crisis, the consumption of white washable paint has decreased. The estimated turnover growth this year is based on the expansion by about 30% of the presence of this company's products in the distribution network, as well as on the contribution brought by the new store opened Friday in Bucharest. The show-room in the Capital is the first own selling unit of the company "Akzo Nobel" in Romania and it aims to offer its clients, in addition to products, a wide range of consulting services in the field. "We want to bring here architects, designers, specialists in the field, to help our clients paint and furnish their houses", Marius Pintea mentioned. According to him, the investment in the paint and varnish store amounts to EUR 400,000, the space being acquired from the company "Eurocolor". This year, 2-3 other such show-rooms will also be opened, and next year another 4-5 such sale units. The company’s target is to have 10 own stores on our market until 2012. (May 30th 2011)

Lindab, at the First Products Delivery to Russia
The manufacturer of metal and ventilation systems Lindab Romania, the local subsidiary of the Swedish group Lindab, has delivered products to Russia for the first time in a project to build a new plant for the drugmaker Nycomed. Thus, Lindab Romania has delivered façade boxes of 7,000 square meters, amounting to EUR 260,000 euros, following to send the materials needed for the construction of another building. "Nycomed is the first project delivered from Lindab Romania to Russia, and at this point we are also preparing other two deliveries in a similar formula", Andrei Sulyok, the general manager of Lindab Romania, declared. The plant is located in Iaroslavl locality, located about 250 kilometers north of Moscow and represents an investment of EUR 75-85 million. Lindab Romania has not announced yet the results for 2010, but last year the company’s turnover stood at EUR 25 million. (May 18th 2011)

Teraplast (TRP) business increased 11% in Q1
Teraplast Bistrita (TRP), a provider of integrated solutions and systems in field installations and buildings, announced a turnover growth of 11% in the first quarter, a month after Stefan Bucataru’s appointment as the company’s general director, replacing Florin Urite. The company recorded a turnover of RON 38.1 million in the first quarter, compared to the value of RON 34.3 million registered in the same period last year. In contrast, Teraplast’s net profit was reduced by about 60%, from RON 2.47 million in Q1 2010, to about RON 1mln in January-March 2011. (May 13th 2011)

MACON: Investments of EUR 15mln for plants’ modernization
Macon Deva, an important producer of construction materials, will allocate in the period 2011- 2015 funds of EUR 15mln to modernize some plants, the amounts adding to the EUR 14mln spent by Enterprise Investors (the owner of Macon) in the period 2006-2010, with the same purpose. For this year the group’s officials planned investments of EUR 4.8mln, a share of approximately 50% of the total being directed towards the ACC production sector. “The market of construction materials will decline this year by 5% against the level in 2010. Although the prices charged by distributors in the first four months of 2011 fell again, the investors did not give up Romania, hoping in a more rapid recovery of the local economy. The focus will be on energy efficiency, our country committing to the three objectives to be achieved until 2020: reducing by 20% the emissions of greenhouse gases, obtaining 20% of the energy demand from renewable sources and diminishing consumption by 20%. One of solutions to meet these conditions is the construction of passive houses, ACC being recommended in this regard because it’s a performing building material energetically, with thermal conductivity between 0.10Mw/mK and 0.13W/mK”, declared Marius Marin, chairman of Macon group. (May 10th 2011)

Rohan: The consumption of Cement Will Reach the European Average Per Capita in 2015
Cement consumption per capita will increase in Romania in the next period, so in 2015 it will reach the European average of 423 kg per person, but it should double so that the gap between Romania and Western Europe in terms of infrastructure would be eliminated, CIROM estimates. "Last year, we had a consumption of 322 kilograms per capita and we estimate to reach in 2015 423 kg per capita, which is close to the European average, but they have this level for 20 years. They already have highways, airports, offices, etc. We should consume double to link our infrastructure to the European", the president of the employers' on the profile market, Mihai Rohan, said yesterday, quoted by Mediafax. He said that the construction market has dropped by 50% over the past two years because of the crisis, and the share of the construction market in GDP has also reduced from more than 10% in 2007 to less than 8-9% last year. "Regarding cement production in Romania, we can see that from six million tons in 2000 we reached 10.6 million tons in 2008, after which production fell last year to seven million tons", Rohan mentioned. CIROM President believes that the authorities should prioritize investments and continue those which have funding, explaining that 40,000 sites are currently open. The cement market in Romania is divided between the subsidiaries of the groups Lafarge (France), Holcim (Switzerland) and HeidelbergCement (Germany). (May 6th 2011)

Business and profit slightly down for Prefab (PREH) in Q1 2011
ACC producer Prefab Bucharest, controlled by businessman Petre Milut, posted in the period January – March of this year a turnover of RON 15.1mln (EUR 3.6mln), 9.6% down against the level of the similar period last year. The company posted a net profit lower by 7.2%, of RON 171,000 (about EUR 40,700). The gain in the first quarter is due to the financial profit, of about RON 192,800, registered following a favorable influence of the exchange rate, i.e. the RON appreciation against the EUR, according to company’s report. From the core activity the company recorded an insignificant loss in conditions in which the construction activity is usually weak this time of the year. (May 3rd 2011)