The Austrian-based Kronospan group, one of the major players in the wood industry, is set to carry out investments worth 15m euros in Sebes (Alba), through a programme that will add to investments of over 250m euros, already made by the Austrian group on the Romanian market.
The total value of investments operated by the Austrian group includes a deal worth around 200m euros, whereby Kronospan acquired the two Sebes-based plants, which were previously owned by market rival Gruppo Frati. At present, Kronospan is the biggest domestic producer of chipboard and MDF, with annual production of 810,000 cubic metres of chipboard and 346,000 cubic metres of MDF.
"We want to enter the markets of former Yugoslavian states, such as Macedonia, as well as the markets of Ukraine, Georgia and Azerbaijan," states Adrian Bacila, production manager of Kronospan Sebes.
Currently, Kronospan's main export destinations include Poland, Spain, Turkey, the Czech Republic, Slovakia, Italy, Lebanon, Israel, Cyprus, Egypt and Serbia, with the largest part of Sebes-based production destined for foreign markets. As a result, 80% of MDF production and 50% of chipboard production are exported. However, the company does not intend to increase its production capacities.
Last year, Kronospan generated a turnover worth over 150m euros and a gross income put at 6.46m RON (1.83m euros). At present, Kronospan employs more than 500 individuals. In 2005, the two facilities in Sebes reported losses of around half a million euros.
"Final results were positive owing to the production increase and also to RON growth against the euro," Bacila added. This year, Kronospan expects to remain in the black, however, company representatives would not specify the exact value of their income.
In a move made early this year, Kronospan shareholders increased by the credit facilities the Sebes plant took from HVB Tiriac Bank by 13m euros to 16m euros. Bacila specified that the money would be used to finance investments, as well as working capital, and that the company did not plan to contract any more loans in the near future.
The Austrian group also plans to operate investments worth 10m euros in a new formaldehyde installation through Kronochem, one of the domestic units of the Austrian group.
The Kaindl family of Austria first set up the Kronospan group in 1897. Today, Kronospan consists of two separate companies, one headquartered in Austria and one in Switzerland. The majority shareholder in the two Sebes-based plants is Kronospan Holding Limited, a company registered in Cyprus. The domestic wood processing industry has attracted investments of several hundred million euros from Austrian investors. For example, the Egger group has earmarked 500m euros for a project that will unfold in several phases. Another major Austrian player is Holzindustrie, which also holds production facilities in Sebes.
Kronospan
Set to carry out investments worth 15m euros in Sebes (Alba), on top of the over 250m euros the Austrian group has invested in Romania so far
Largest domestic producer of chipboard and MDF, with annual production of 810,000 cubic metres of chipboard and 346,000 cubic metres of MDF
Plans to export to new foreign markets
Last year generated a turnover worth over 150m euros and gross income put at 6.46m RON (1.83m euros)
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