“2013 could be the year when decline stops and the market is flat, but this depends both on the country’s economic performance and on the political one. The premises are already there because there has been political stability since December 2012,” says Iulian Mangalagiu, general manager of Ceramica Iasi.
He says in 2013 producers will fight for each client, whether they are individuals or major real estate developers, and that each of these clients will want the best price.
“One can notice on the market a diversification of client requests. Clients are increasingly well informed.”
Also expecting a flat market is Corneliu Fecioru, a member of the board of directors, sales and marketing of Austrian producer Wienerberger.
“If in 2013 we see a market at last year’s level, this would be a positive signal,” Fecioru says.
He says last year the brick market declined further, with the sector falling by around 5% in the first 11 months of 2012. The Wienerberger representative cites data from the National Statistics Institute.
The company last year had similar sales both in volume and in value to those recorded in the previous year. Wienerberger Brick Systems, the company through which the Austrian group operates its brick operations in Romania, recorded a turnover of EUR27.9 million in 2011, according to Finance Ministry data.
“Some of the risks we could face this year are unexpected evolutions in the prices of materials we use in this industry, such as gas, electricity and diesel oil.”
After a decline last year and a potential flat market in 2013, brick producers place their hopes with 2014.
“Unfortunately there are no growth predictions for this year, either, with masonry consumption being estimated at a similar level to 2012. Only starting in 2014 is a small-step resumption of growth to be expected,” says Liviu Stoleru, general manager of Cemacon, another player on the brick market, which has a production facility in Zalau.
He says the battle over prices and over more relaxed deadlines will continue as competition will be increasingly tight as offer continues to exceed demand in Romania.
In early March the employees and former managers of brick producer Cemacon sold a 23% stake in the company to Finnish investment fund KJK Fund II, which now controls over 29% in Cemacon.
Last year Cemacon recorded a 26% turnover rise, to 34.6 million lei (EUR7.8 million). Cemacon shareholders also include Broker Cluj and Andrei Cionca, founder of insolvency firm Casa de Insolventa Transilvania.
(English version by Daniela Stoican)