“In absolute figures, the growth amounted to 3 million lei (EUR0.7 million),” said Ioan Marginean, Silvarom’s economic manager. This increase was largely the result of the company winning tenders to provide schools with furniture, as school furniture is a less targeted niche by Romanian manufacturers.
Silvarom is a medium-sized furniture manufacturer, which posted a 38% turnover decline in 2010 against the RON27.5 million (EUR6.5 million) recorded in 2009.
“The turnover (budgeted) for 2011 is around 10% lower than the 2009 figure, which was very good. We are hoping this turnover will bring us a 8-9% profit margin this year,” Marginean added.
The beginning of 2011 was contradictory on the furniture market. While the big companies, such as Mobexpert and Elvila, which also own plants, failed to grow, smaller companies, such as Casa Rusu, announced a turnover increase, but less than 10%. The growth announced by Silvarom is the highest on the market.
Several furniture manufacturers, including Silvarom, have started to approach foreign markets. In the past, the company was among Romania’s major exporters. Silvarom left the international market in 2007, when the entire industry reduced its exposure to Europe, focusing instead on Romania. When exports were dropped, it had an immediate impact on the furniture market, considering that before 2007 exports amounted to around EUR10 million.
“Exports are now in the stage of tentatively approaching neighboring markets. Our first positive signals come from the Hungarian market, with hopes to export to Serbia, Bulgaria and probably the Russian Federation,” Marginean said. (EUR1=RON4.216)