“If Romania produced more, we’d have healthier economic growth, more jobs, there would be innovation,” explains Varga.
Many of Romania’s plants have been shut down after 1989, being replaced by malls, offices and housing units. Moreover, in the ranking of fields of activity in the local economy, the top two positions are filled by trade (retail and wholesale), and a production field, namely electricity and thermal energy generation and supply comes only third.
Bela Varga states that at this moment the private field is supporting the local construction field and in the field of carpentry and installations, where Rehau also operates, sales are almost completely operated to the private area. “Only infrastructure depends on state capital”.
The company expects to generate revenue of around EUR41.5 million this year, up 12% on the year. “Constructions registered a decline in 2014, but there were also increases on the housing and office segments in large cities. Exports also helped us increase our sales”.
Around 90% of the company’s revenue is generated by constructions, and the rest by the industrial field.
For 2015, the company budgeted a 5% revenue increase in the context where constructions will have a slightly upward trend. Drivers that should maintain a strong increase will lack, though, believes Rehau official.
He adds market situation will not radically change next year as neither the European, nor the regional and local context will improve considerably, either.
Starting next year, Rehau Polymer will become a regional hub for the German group. Products and services will be delivered from here to countries in the region. “I believe there are more companies planning to turn Romania into a regional hub. Had we had a better transport infrastructure, the number of such companies would have been even higher,” says Bela Varga.
Rehau, which has operated in Romania since 1996 and currently has 100 employees here, in 2010 shut down the plastic pipe plant it owned in Cisnadie after having invested some EUR10 million starting 2003.
The products currently sold in Romania are brought from Rehau plants of other countries, mainly Germany.
(English version by Catalina Apostoiu)