“Three quarters into the year we can safely say we will see more than EUR94 million revenue this year and beat last year’s level. When we go beyond EUR100 million we cannot say, but we want to grow every year,” Ion Lazar said at an event in Ploiesti, celebrating the group’s 20th anniversary.
International Lazar Company is the only large trucking company in Romania still owned by a Romanian, after private equity firm Bancroft took over Craiova-based Dumagas from the Dugaesescu family and edy Spedition, where private equity firm Westerham Holding owns 17.5% slashed its truck fleet from more than 1,250 to 280 in 2013, following insolvency.
“We, too, got offers to sell the business, especially in 2006-2007, when a Czech company wanted to buy it for more than EUR20 million but we asked a much higher price than offered precisely to make the deal fell through. I did not want to sell because even then I could sense the potential of the market,” Ion Lazar said.
The biggest customers of the Pitesti-based group include Automobile Dacia, Renault, ArcelorMittal, Procter&Gamble, Bergenbier, Arctic, Ikea, Pirelli, Bridgestone, Lafarge, Michelin and Leoni. It mainly carries freight to Germany, UK, Poland, Turkey, Czech Republic, Hungary, Slovakia, Greece, Bulgaria, Switzerland, Portugal, Benelux, Morocco, Iran, Russia, France, Italy, Spain and Slovenia.
The largest company in the group is International Lazar Company, which posted EUR40 million revenue last year, followed by Hoedlmayr Lazar Romania, a company founded in partnership with Austria’s Hoedlmayr, which carries cars for Automobile Dacia. This particular company posted EUR35.2 million.
“The year 2014 has not been a good year. What you see on TV is deceiving. 2013 was better because this year we’ve had to struggle with this new EUR0.07 excise duty, which weighed heavily in the economy of our business. We became eligible for getting back part of it, but actually got only words.”
With a fleet of 470 trucks, the company may use as much as one million liters of diesel a month, according to ZF estimates, which would translate into an excise duty of EUR70,000 per month.
The company plans to start a fleet renewal program, replacing old trucks with new ones, its owner said.
Twenty years ago Ion Lazar started an automotive parts trade business, which then turned into a freight transportation business.
“Now after twenty years we need to bolster our business and separate the companies in the group by types of operations. For instance, International Lazar will only be a carrier, all the buildings will go to Lazar Logistics and they will be either rented or used for logistics purposes.”
The most difficult years for the group were the first two of the economic crisis, 2009 and 2010, when truck sales on the local market, too, fell by almost 90%.
“Romania has a young economy. Our company’s most difficult years were 2009 and 2010. We have grown accustomed to crisis situations and took safety precautions.”
The Lazar Logistics space near Ploiesti currently accommodates French wiring maker Leoni’s Romanian operations. Leoni has about 2,000 employees there, according to Luc Nenon, Leoni Romania boss. The company will expand production in Pitesti in 2015 to be able to supply parts for Infiniti cars, Nissan’s premium brand, among others.
“Leoni will expand by more than 7,800 square meters but we will build another 8,000 square meters and then another 4,500 square meter facility in the spring. We will have a higher amount of freight to carry for them, and will provide logistics, distribution and other services,” Lazar said.
The next step will be the construction of railroad terminal together with the Austrian partner, a car and commodity terminal that will also include packing operations, as well as the expansion of the new Lazar Natural Fruits unit.
(English version by Loredana Fratila-Cristescu)