“We value the paint and varnish market at EUR155-160 million. In 2014, the market is stable, maybe with a slight decline considering purchasing power will drop a little,” stated Marius Vacaroiu, chief executive officer of Policolor-Orgachim group.
He also said in Romania there is overcapacity on the paint market, so that players in this field operate on average at less than half the installed capacity of the plants they own.
“This does not mean, though, profit is not generated. The capacity reserve is quite healthy considering we are speaking of a seasonable market, when there are five months of low production and during the season plants have to operate at high capacity,” explained Vacaroiu.
Policolor, a company controlled by investment fund RC2, in 2013 posted revenue of around EUR29-30 million and the entire Policolor-Orgachim group reached revenue of EUR55-60 million.
“In 2014, we hope for single digit increases in Romania and two-digit growth for Bulgaria (where Orgachim operates i.e.),” states Vacaroiu.
Growth in Romania should be mainly triggered by the introduction of new products on the market, while in Bulgaria the advance will be bigger owing to the reopening of the resins plant, damaged in a fire in 2012.
Policolor has just one paint plant for the car industry left in Romania, while the other types of paints are produced in Bulgaria. The producer in 2013 decided to relocate its plant of eastern Bucharest on Policolor platform of Theodor Pallady.
The construction of the new plant is supposed to start in autumn and the investment put at EUR7 million will be completed in 2016. The company did not provide details about the exact location of the new plant, but said it would be in the area of Timisoara boulevard.
(English version by Catalina Apostoiu)