“If the Government continues works on the infrastructure segment, which started in 2011, this would definitely have a positive impact, both on cement sales and on the economy in general. So, we expect the market growth will continue to rely on infrastructure projects and non-residential projects,” said Holcim Romania general manager Daniel Bach.
The company managed to bring its turnover back to growth last year, posting a 13% increase to EUR225 million, according to preliminary data. Company officials said the increase in turnover in 2011 is due to improvements in the construction industry, as infrastructure works, as well as non-residential ones have gained impetus, as well as due to the launch of new products and good weather conditions.
“Considering the predictions for a slight market growth this year, we estimate a similar increase in Holcim’s turnover,” said Bach. The local cement market rose almost 5% and the three largest producers (Lafarge, Holcim and Carpatcement) saw their turnovers return to growth.
The estimates come even as Holcim Romania’s first-quarter cement and clinker sales declined 6.7% from the same period a year ago, and prices fell 1.6%.
For 2012, the company targets investments of EUR25 million, with the bulk of the money to be pumped into its cement plants in Alesd and Campulung and to the grinding station in Turda.
Holcim Romania also said it would finalize a EUR14 million investment this quarter into a project aimed to recover residual thermal energy at the Alesd-based plant. Once completed, this investment will replace around 15% of the energy consumed at the Holcim plant in Alesd with green power.
“We will continue to invest in developing Holcim’s production capacities in Romania. A few years ago we were planning to build a cement plant in Mihai Viteazu, where we bought the land, but the plan was put off because of the financial crisis. When the market recovers, we will definitely put our investment plans in motion,” Bach also said.
(English version by Daniela Stoican)