The group says the increase is because of the rise in sales of paints and coatings by 9.4% and the performance of the resin plant Orgachim Resins in Ruse, Bulgaria, which posted 27.5% higher sales than budgeted. The plant reopened in 2014 and 2015 was its first full year in business.
“The market saw a slight increase of about 5% last year and stood at some EUR170 million. Looking at the first quarter activity, we estimate the sector (of decorative paints and coatings i.e.) will see an about 5% increase in value this year, as well,” says Marius Vacaroiu, chief executive officer of Policolor.
“The estimated growth will be driven by do-it-yourself renovations and by demand from new residential projects, considering the number of homes completed should go up by 25% in Bucharest alone.”
Policolor last year announced it was about to start construction work on a new plant in the west side of Bucharest, where it will make both water-based decorative paints and paints and coatings for the automotive industry. The new plant built on a 2.5-hectare site should begin production in 2017, after a EUR6.4 million investment that includes the land.
Policolor only has an automotive paint plant in Romania at the moment, while the rest of products are made in the facilities of the group in Bulgaria.
Competition on the local decorative paints and coatings includes Fabryo-Atlas Paints, Koeber, Daw Benta and Deutek.
(English version by Loredana Fratila-Cristescu)