“We saw a slight increase in volumes in the first nine months compared with the same time last year, because of the favorable weather conditions in the first quarter. Sales trends (of cement i.e.) were different by segment, but it is obvious the infrastructure recorded the highest decline,” says Florian Aldea, general manager of Carpatcement Holding.
According to National Statistics Institute data, civil engineering works, i.e. infrastructure works, declined 28.3% in the first eight months of the year compared with the year-ago period, as the government slashed investment spending, which was 18% lower than in the corresponding period of 2013. Overall construction works went down 11.9% in the first eight months.
“The low appetite for investment of both companies and consumers, and the decline in the infrastructure work volume altered the market this year. On the other hand, the low confidence in financing new projects played an important part in this,” Aldea says.
The companies in the cement business were affected by new taxes introduced this year, which drove up their manufacturing costs, Aldea added.
He estimates the local cement market put at EUR500 million to EUR600 million a year will most likely be flat in 2014, but “increases or slight declines may occur at any time.”
HeidelbergCement owns three cement plants in Romania, as well as 18 concrete batching plants, seven quarries and seven borrow pits.
Local cement production amounted to 7 million to 7.2 million tons in 2013, after a 5%-8% decline in 2012.
(English version by Loredana Fratila-Cristescu)