Sofian, a metallurgical engineering graduate of the Polytechnic University of Bucharest, has invested about EUR40 million in the recycling business over the past six years, writes BUSINESS Magazin.
He owns 50% in the company, with the rest held by German scrap metal recycling specialist Scholz AG. The German partner contributed the funding to the business, Sofian says, adding that his way of running the company is to sell to the highest payer even though that may not always be his German partner.
There are about 263 facilities collecting and recycling scrap metal throughout Romania that participate in the government-endorsed car scrapping scheme, the data of the Environment Fund Administration (AFM) reveal.
Thirteen of them are located in Bucharest and one is located in the south of Bucharest.
Rematholding group’s turnover stood at almost EUR167 million last year, while profit hit EUR6.7 million.
The branch in Bucharest contributed EUR113 million to the turnover and EUR4.8 million to the profit. The group’s business in the first five months had already overshot the EUR77 million mark, while profit had reached EUR1.5 million. 2011 looks like it will be a good year, said Sofian.
Recycling facilities’ profit comes from very high demand for scrap worldwide, which means various countries cannot fill their scrap needs at all times. This makes the market a seller’s market, and those who have the scrap can name the price. This is why Sofian has developed the business so as to have plastic, paper, electronics scrapping operations complement the car scrapping operations.
“On top of that, we also buy cars and sell parts,” said Sofian.