Austria's Holzindustrie Schweighofer, one of the major players in the wood processing industry, intends to boost its investments on the domestic market by 130m euros, with a view to increasing production capacities and also for the construction of two electro-thermal cogeneration stations.
"The total value of investments in Romania stands at around 170m euros, on top of which we will add 130m euros within the next three years," Gerald Schweighofer, owner of Holzindustrie Schweighofer, told ZF.
Schweighofer specified that 50-60% of the investments would be paid for with bank loans, while the rest will be self-funded.
The Austrian-based company is already carrying out a project involving a new timber plant in Radauti, Suceava, which will support the already existing plant in Sebes, Alba. The investment amounts to 70 million euros and the project is scheduled for completion at the end of this year, with production due to start in 2008.
With the Radauti investment, the company's annual production capacity will reach 2.2 million cubic metres of processed logs, from a previous level of 1 million cubic metres.
"Around 80% of the raw materials we use come from Romanian suppliers, but we want to reduce this percentage to 70% in the next few years," added Schweighofer.
Eighty percent of Holzindustrie's Romanian production goes to export markets, with Asian countries as the prime destinations.
For 2007, Holzindustrie expects to generate a turnover worth 150m euros, an increase from 121.3m euros in 2006. In the first half of this year, the company's revenues reached 80m euros. At present, the company has 750 employees, with their number expected to reach 1,000 by the yearend. The current Sebes wood processing platform has an approximate area of 34 hectares.
More specifically, last year, the company finalised works on a wood pellet production facility, with investments amounting to some 3m euros.
Not only is Gerald Schweighofer involved in the wood processing industry, but he also has an interest in the hotel market. Holzindustrie has already opened an over 100-room hotel in Radauti. Entailing investments that topped 4m euros, the hotel is primarily used to accommodate the company's specialists.
Gerald Schweighofer also owns the Romanian company, Cascade Empire, which is involved in the acquisition of forested areas.
Early last year, the Austrian businessman announced that he had set aside 20m euros for acquisitions, and by end of last year had already bought 5,000 hectares of Romanian woodland. In the medium-term, the company targets the acquisition of 10,000 hectares of forest.
In recent years, Romania has attracted investments worth hundreds of million euros from Austrian players in the wood industry.
Among the key factors attracting Austrian investors to Romania are the cheap raw materials, the relatively low workforce costs and the favourable geographical location.
Holzindustrie
In 2002 construction began on a new timber plant in Sebes, Alba
This year, targets a turnover worth 150 million euros, from around 120 million euros in 2006
In 2008 production will start at the new plant in Radauti
This year, opened a hotel in Radauti with an over 100 room capacity
The total value of investments the Austrian company has carried out in Romania amounts to 170m euros
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