Build Corp, the company controlled by George Ivanescu, one ofthe most discreet businesspeople of Iasi, last year climbed to aspot among the top ten construction firms, after deriving 132m-euroturnover, owing to the building of Iulius Mall shopping centres,the biggest mall network in the country, developed by IulianDascalu.
Build Corp has in recent years been involved in the constructionof Iulius Group's four malls in Iasi, Timisoara, Cluj and Suceavaand is developing Palas Iasi mixed real estate project set torequire 250m-euro total investments.
The company has changed its strategy this year and invested toboost capacities to manufacture pre-cast products for roadinfrastructure as real estate market investments have dwindled.
"Because of the real estate sector contraction, we shifted toboosting capacities to produce road infrastructure elements," saysIvanescu.
Moreover, because of late payments by clients, the companydecided to deliver its products only to those with a good paymentcapacity, despite their smaller size.
The company last year derived turnover worth 132 million euros,up 81% from last year, being one of the top ten construction firmsin the country. However, Ivanescu expects turnover to go down thisyear. "We're naturally experiencing a slight turnover decrease onthe constructions segment, but we have increases on the precastproduct segment".
Build Corp in 2006 acquired Somaco Iasi precast products makerand is now a major supplier of elements for road and bridgeconstruction of Moldova.
Build Corp this year has felt the financial crisis fallout as aresult of the dwindling real estate investments and stepped upnegotiations with suppliers for longer payment terms, rationalisedconsumption and optimised personnel work.
"Our company has not shut down any of its operations, but hasbeen permanently trying to identify new customers," maintainsIvanescu. The company cut down its number of employees from 591 inearly 2009 to 475 employees in August.
The company is currently involved in the expansion of IuliusMall Timisoara shopping centre developed by Iulius Group,businessman Iulian Dascalu's company, by around 90,000 built squaremetres, thus doubling up its area.
"Works are on schedule and will be finalised in late October2009, with the value of the contract standing at around 60m euros",says Build Corp's manager.
The company is carrying out another project developed by IuliusGroup in partnership with Iasi City Hall, called Palas Iasi, whichwill have an area of around 250,000 square metres and a contractedvalue of 200m euros.
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