Businessman Florentin Banu will use some of the money obtained from the sale of wafer producer Joe and the Artima supermarket network, for the construction of a residential complex in Timisoara.
The project involves the construction of six blocks of flats by the end of 2007, with the investments to reach about 10 million euros.
"Given the housing shortage in major cities, investments in new constructions are a stronger economic growth engine than investments on the capital market. In planning these developments, we''ve started from an evaluation of the necessary space and we''ve tried to eliminate the unnecessary space and to rank the remaining spaces," Florentin Banu told Ziarul Financiar. He has already acquired the plot of land, for which he paid around one million euros.
The businessman has other investment plans as well. Next year, Banu intends to earmark funds for a new production hall, for the Timisoara-based firm he owns, Interpart Production, specialised in the production of car parts.
According to data available on the website of the Finance Ministry, the company last year derived total revenues of 91,000 RON (about 23,000 euros), amid losses standing at 300,000 RON (more than 74,000 euros).
"We plan to recoup the losses registered so far by the end of 2006, to seal contracts with new customers and to reach a total 100 employees. For the same year, 2006, we also plan to invest in a new production hall of 3,000 square metres," Banu announced. According to him, the share capital increase of over 140,000 euros carried out this summer will allow for technological activities to be started at Interpart Production. At present, the company owns a 1,000 square metre hall. The businessman expects Interpart to reach turnover of more than 4 million euros, and employ more than 200 people in 2007.
Banu, who owned a stake of more than 27% in Artima, made the decision, along with the other shareholders, to sell the network made up of 14 supermarkets, for 17 million euros.
Artima was set up in 2001 with the money Banu had raised from the sale of another business, wafer producer Joe. Joe International Business Company was founded by Florentin Banu, his brother Daniel Banu and another two foreign investors. The firm was taken over by Swiss giant Nestlé in 2000.
The two domains the businessman has focused on, real estate and car part production, are among the most dynamic in the Romanian economy, and are still in full swing. transilvania@zf.ro
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