The contracts signed with the state help Romanian construction industry entrepreneurs make tens of millions of euros in profits.
The road rehabilitation projects in the country generated more than 570 million euros in revenues for Nelu Iordache, (Romstrade Giurgiu), Dorinel Umbrarescu (Spedition UMB), and Theodor Berna (Tehnologica Radion), that is 4% of the total value of the construction market in 2008.
Therefore the ranking of the biggest construction firms put together by ZF, where the top companies are those involved in infrastructure works exclusively, contradicts the market trend of the last few years, when real estate investments - homes, office space or shopping centres, had been the main growth driver.
Laurentiu Plosceanu, chairman of the Romanian Construction Contractors Association says that most Top 10 companies have enjoyed political support over the last few years and won many national road rehabilitation contracts.
Giurgiu-based Romstrade controlled by Nelu Iordache, the businessman who also owns low-cost airline Blue Air went from 18.5 million euro business in 2006 to almost 220 million euros last year, according to the Finance Ministry.
Romstrade has won several contracts worth more than 650 million euros over the last two years, especially during Ludovic Orban's (National Liberal Party - PNL) term in office at the Transports Ministry.
The business held by Dorinel Umbrarescu (Spedition UMB), too, increased four-fold last year alone, to almost 180 million euros. Spedition UMB is building the Moara Vlasiei - Ploiesti (km 19.5-62) highway section together with PA & CO International and Euro Construct Trading '98, a contract worth 249.7 million euros signed in 2007.
Beyond the annual turnover generated mainly the contracts with the state, the three entrepreneurs made 80 million euros in net profits at the end of last year.
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