“The local market has suffered a renewed decline this year. A major factor that triggered this decline is the fact that thermal rehabilitation programs have contracted by volume in the past two years,” states Vlaicu.
This year, as public investment expenses were slashed by 18% in the first 8 months of the year, all state projects, including thermal rehabilitation ones, suffered.
“This year can be said to have been the weakest, with the lowest activity on the segment of thermal rehabilitation since the program was initiated,” states Vlaicu.
He adds the market is now supported by renovation works carried out by individuals.
In 2013, Gealan Romania posted revenue worth some EUR23.4 million, according to Finance Ministry data, and Vlaicu expects flat revenue for this year.
Amid the falling local demand, Gealan Romania has bet on direct exports, to countries such as Germany, Iraq, Saudi Arabia, Bulgaria or the Republic of Moldova, or indirect ones, through partners. Direct exports will generate around 5% of Gealan’s revenue this year. The company has around 450-500 partners.
Gealan has a plant with an installed production capacity of around 15,000 tons per annum in Bucharest and Vlaicu states the unit produced this year at around 70% of installed capacity.
In Vlaicu’s opinion, the move to cut public investment expenses in Romania has hurt the country’s economic growth potential.
(English version by Catalina Apostoiu)