“The increase is due to the revival of the construction industry, as new road infrastructure and non-residential projects were launched and weather conditions were favorable,” Daniel Bach, general manager of Holcim Romania, told ZF.
Bach was appointed Holcim Romania general manager in April 2011.
2011 was the first year since the beginning of the crisis when Holcim Romania’s sales started to pick up. The cement maker reported turnover of over EUR372 million in 2008, which halved to some EUR200 million by 2010, according to Finance Ministry data.
The local cement market picked up in 2011, due to the real estate and road infrastructure projects started last year.
According to preliminary data, the local cement market grew by 5% last year, said Bach.
He highlighted that, although the cement market picked up in 2011, the growth is not significant as Romania is still facing a low level of private investments and the cement market is still marked by uncertainty.
Bach estimates the local cement market will increase by up to 3% in 2012 thanks to road infrastructure and non-residential projects.
Holcim Romania estimates its turnover will also witness growth this year.
“We can’t expect the residential sector will revive, as long as many real estate projects have been suspended and access to crediting for potential new projects is difficult,” Bach explained.
Swiss company Holcim has been present on the Romanian marked for 15 years and invested EUR100 million locally between 2009 and 2011 in upgrading its production facilities.
For 2012, Holcim Romania set an investment budget of over EUR25 million, which will go to its cement plants in Alesd and Campulung, as well as to its Turda-based grinding plant. The cement maker’s most significant investment project this year, worth EUR14 million, targets to recover residual heat, which will replace with green energy about 15% of the electricity used at the Alesd-based plant.
The two other top cement producers on the local market, Lafarge and HeidelbergCement (present in Romania through subsidiary Carpatcement Holding) have not yet presented their financial results for 2011.
French group Lafarge’s sales in Romania increased 5.5% in 2011, according to the company’s 2011 report. Lafarge owns two cement plants in Romania, in Hoghiz (Brasov) and Medgidia, as well as a grinding plant in Targu-Jiu. They have a total capacity of 4.5 million tons.
(English version by Ioana Tudor)