“The growth is because of the increase in the demand for energy efficient masonry products on the domestic and neighboring markets, as well as because of the mild weather at the beginning of 2014, so construction work was possible to start earlier,” says Nicolae Dusu, chairman and shareholder of Celco.
Another factor in the growth was the increase in the lime production capacity of Celco’s plant in Corbu (30-kilometers away from Constanta) by 60%, following the installation of a new limekiln last year.
Celco manufactures lime, adhesives, mortar and autoclaved aerated concrete (AAC). AAC sales generate about 70% of the revenue. The company set out to boost revenue by 3% to 5% in 2015, as it expects residential and infrastructure construction to pick up.
Dusu’s 2015 estimates come after a significant decline of the infrastructure sector in 2014 due to the slashing of the governmental investments and after the residential sector showed the first signs of rebound.
“An additional cap was approved for the ‘First Home’ scheme in early 2015 and the National Forecasting Commission said that construction would see 5% to 5.5% annual growth in the next three years, which makes us optimistic about the year that has just begun.”
The businessman says there are some signals about a rebound of the entire European economy, after having suffered from low demand and lack of confidence, which are still showing in low volumes compared with the potential of production facilities. This goes for Romania, too.
“Under the circumstances, given the fiercer and fiercer competition among manufacturers because of the overproduction of masonry materials, we expect an increase in their interest in upgrading and innovating their manufacturing technologies in 2015, which are essential to be able to cope on a constantly changing construction market.”
Celco’s chairman says the local construction market is also influenced by the administrative barriers that render certain construction projects impossible to do. “I mean all sorts of zoning regulations here,” Dusu says.
Celco completed EUR5.5 million investments in a new limekiln, in buying a new AAC packaging system and in upgrading a line at its adhesive and mortar plant last year.
Celco’s main rivals on the AAC segment are Xella and Elpreco.
(English version by Loredana Fratila-Cristescu)