“There are some signs that weatherization projects will resume in 2014, at least when it comes to statements, but you cannot rely on statements alone, these projects have to actually begin,” Vlaicu said at the window, door and facade trade show Fensterbau/Frontale held in Nuremberg last week.
Gealan expects sales on the local market of PVC profiles to be flat this year so it is considering developing exports of its plant in Bucharest, after starting sales abroad more than a year ago.
“We have very high export chances,” said Juergen Kuespert, chief executive officer of the Gealan group, also attending the Fensterbau/Frontale trade show.
Exports to Saudi Arabia, Algeria, Libya, Iraq, Iran, the Republic of Moldova and Bulgaria generated some 5% of Gealan Romania’s revenue last year. Gealan is considering tapping into new markets, especially in the Middle East and wants exports to account for “up to 10%” of its 2014 revenue. Exports could generate an increase in revenue for the company this year, Vlaicu says.
“Exports will be the drivers of the market and of Gealan Romania’s business in 2014, as will the development of new premium systems for passive homes supporting the current energy saving trend,” Vlaicu said.
Gealan’s CEO, Kuespert, says Romania is an “extremely important” market as it generates 12% to 13% of the sales of the group (which stand at some EUR220 million a year, according to ZF calculations).
Romania is one of the top five priority markets for the Gealan group, Kuespert said, adding he was optimistic about the economy of the country in 2014-2015.
Gealan has about 400 partners in Romania and budgeted some EUR500,000 investments in machinery and equipment for the plant in Bucharest and in new technologies in 2014. Gealan Romania is currently employing 100 people.
The local market of double-glazed window and door trim was one of worst hit sectors by the crisis. The market now stands at about EUR350 million to EUR400 million a year, according to Gealan estimates, compared with EUR1 billion during the boom days. PVC profile sales generate about EUR100 million to EUR150 million of the total sales and Vlaicu expects them to be flat in 2014.
German-held PVC profile maker VEKA has recently acquired the European operations of Gealan in one of the most important deals in the construction industry in the past year. The deal includes the business in Romania, where both companies have operations. Unlike Gealan, which has a production facility in the country, VEKA only imports the products it sells from its facilities in Europe.
Gealan’s plant in Bucharest has a 15,000-ton yearly production capacity, according to the latest information available. Both brands will continue to operate separately.
“The documents for the acquisition of Gealan by VEKA have been signed, but the deal has to be approved by European competition authorities. The impact of the deal and whether it will create a monopoly or not has to be assessed on a country-by-country basis. We have a three to four-month assessment and waiting period,” Vlaicu explains.
One of the biggest rivals of Gealan in Romania is another German group, Rehau.
Gealan Romania posted EUR28.2 million revenue in 2012 and last year’s revenue was flat, according to Finance Ministry data.
(English version by Loredana Fratila-Cristescu)