“It’s hard to define a certain engine of the construction market. The housing market has been a driver, but while projects exit, funding is uncertain. The housing sector undoubtedly has potential. Governmental projects of the First Home type are helping the segment develop,” says Stefanescu.
He came at the company’s helm early this year, after the company’s former general manager, Ileana Nicolae, was promoted manager for Eastern Europe with Sika.
According to Statistics Institute data, infrastructure works posted an over 39% decline in the first 7 months of this year, while the housing segment registered a 39% advance and the non-housing segment had a more modest, 2.2%, increase against the year-earlier period.
Even in this context, Stefanescu says Sika Romania saw its revenue go up by over 10% in the first nine months of this year against the same period of 2013.
“We bet on the niche of special products, but the company’s revenue rose also on the opening of the Cluj mortar plant,” says Stefanescu, adding the 10% advance is likely to maintain for the entire 2014.
In 2013, Sika Romania reached revenue of around EUR19 million.
The local construction market has been dominated by low-cost products in recent years, as Romanians’ purchasing power dropped and people shifted to cheaper materials.
“Romania has a small construction market, with very many players, meaning the low-price phenomenon is due to persist, though it has a damaging effect, both over producers and distributors, as well as over end consumers,” states Stefanescu. The local market reached some EUR9-10 billion last year, compared with EUR15-16 during the boom period.
“We’re upbeat. Some infrastructure projects haven’t started, yet, but we are confident they will, meaning the construction market will rebound,” states Sika Romania head.
The company has 64 employees and owns two production units in Romania. “Sika group is operating new investments in the region in greenfield and brownfield projects, so that we’re not ruling out decisions of this type being made for the Romanian market as well in the coming period,” states Stefanescu.
He adds Romania is a “hot spot” on Sika group’s development map. The company is also operating exports to the Republic of Moldova, which are set to generate 10% of revenue this year. “Starting 2015, we plan to expand the range of products manufactured in Cluj and implicitly start exports to Hungary, Ukraine and Russia as well,” says Stefanescu.
He adds he expects exports to bring between 15% and 20% of the company’s revenue next year.
(English version by Catalina Apostoiu)