But the cumulated turnover of the top five players is almost one fourth lower than in 2011, given that last year investments in infrastructure were drastically cut, while private sector investments were frozen amid last summer’s political crisis.
“Unfortunately the insolvencies and bankruptcies will continue in the construction sector. (…) And this will generate problems down the chain, for other companies in this sector,” says Razvan Niculescu-Aron, first vice-president of the Owners’ Association of Construction Companies (PSC).
A lot of construction companies went insolvent in 2012, small and large ones alike
Two companies left the ranking of the largest constructors last year – Romstrade, controlled by Nelu Iordache, who is currently under arrest for suspicions of fraud over a highway construction contract, and Confort, controlled by Georgica Cornu. Both companies went insolvent last year.
Hidroconstructia remained the no.1 Romanian-held construction company last year, despite its turnover declining significantly, by around 40%, to EUR140 million. The company, which was originally a state-run hydropower constructions enterprise set up in 1961, is currently held by the company’s management and employee association.
Hidroconstructia was largest Romanian-held construction company in 2010-2011 as well, but its turnover exceeded EUR230 million in each of the two years.
Two companies controlled by Bacau-based businessman Dorinel Umbrarescu joined last year’s ranking – Spedition UMB and Tehnostrade, with cumulated turnover of EUR261 million and cumulated net profits of around EUR38 million. While the turnover fell by almost one fifth, Umbrarescu’s profit from the two construction companies halved against the previous year.
No. 4 in the ranking of largest Romanian constructors is Delta ACM 93, controlled by Florea Diaconu, with a turnover of around EUR110 million.
No. 5 is Bucharest construction company Bog’Art, controlled by Raul Doicescu, which posted a turnover of around EUR76 million in 2012, similar in euros to that recorded in the previous year. Unlike other major Romanian construction companies who do business mainly from contracts with the state, Bog’Art has over time mainly worked with the private sector.
(English version by Daniela Stoican)