Construction material producers are not worried about the lack of works but of conditions and payment terms, which affect the entire construction sector, according to Mihai Rohan, president of cement industry and other mineral products for constructions, CIROM.
Cement production was down 40% between 2008 and 2010, while in 2011 it saw a slight increase, to 7.6 million tons. In the first half of 2012, cement production increased 6%, and sales were 3% higher, fueled by infrastructure works.
Hence, in the second half of 2012, the payment issue has become a problem. Rohan sees construction market flat in 2012, in the best case scenario.
He added the insolvency law is very generous with the indebted companies and less permissive with the lenders.
Liviu Neagu, general manager with construction equipments distributor Bergerat Monnoyeur Romania, said in turn many projects lost financing and payments were ceased. According to him, the general contractors are the first to enter insolvency, attracting the raw materials suppliers and the smaller constructors, the other contractors.
Neagu added the biggest problem of the construction sector is the arrears issue.
Valentin Stoica, general manager with design and consultancy company Search Corporation, also pointed out to the cash-in problem. He added the company he runs has to recover EUR7 million from the state and to pay EUR2 million taxes.
He also stressed upon the lack of continuity and vision in the public system as well as the fact Romania does not support the national industry.