Cemacon wants to double turnover after 28m-euro investments

Cemacon Zalau (CEON) brick producer, whose main shareholder is Broker Cluj (BRK), plans to double its sales next year and take over the leading position on the ceramic block market after having completed a 28m-euro investment in a new plant about which it says is the biggest production line in Eastern Europe.

However, the company now holds 26m-euro banking debts.

Works for the new plant started in 2007, when the real estate market was booming, but in the wake of the strong decline it has registered in the past two years, Cemacon sales dropped by 40% last year and by a further 35% in the fist half of 2010, to 9.7m RON (2.3m euros).

"Our current strength is linked to the rising production capacity and the significantly lower production prices as a result of the investment in the new line, an increase doubled by improved product quality and optimised production costs. We're a company in full development, with our management strategy focusing now on expanding our market share, on organisational restructuring and on the implementation of a sustained policy of employee development," stated Liviu Stoleru, general manager of Cemacon.