Dan Popovici, commercial manager with Lemarco, one of the top three players on the domestic sugar market, says the Liesti-based sugar plant can be retrofitted so as to be able to produce bioethanol. "We must find solutions and if it proves profitable, we will start producing bioethanol. The principle we are going by is that we should put to good use everything that can be put to use in an activity," says Popovici.
In the opinion of the commercial manager of Lemarco group, Europe is not ready yet for bioethanol because of major carmakers' reluctance.
"Moreover, the sector is not as developed as it is in South America," he adds. Lemarco posted 39% higher turnover in the first six months of this year, to 22 million euros. During the same period, the company reported income worth 4.4 million euros, four times bigger than the income registered in the corresponding period of 2005.
"The results were triggered by the trend of sugar quotes on foreign exchanges. Sugar is a product traded on exchanges and prices are set depending on the quotes on those exchanges. Domestically, sugar prices are dictated by these quote," states Popovici.
He also says the company's profitability surged from 6% in the first six months of 2005 to 20% in this year's H1. Lemarco last year posted turnover standing at 44.6 million euros, up 32% from 2004. Over the past five years, Lemarco has carried out investments worth 4m euros in the plant of Liesti.
"We've invested in order to boost production capacity, sugar extraction efficiency, to cut down power consumption and also in environment protection," Popovici said. According to the commercial manager of Lemarco, the level of this year's investments will be decided after production quotas are set.
"All investors are highly interested in getting solid quotas," says Popovici.
According to him, the plant of Liesti is the only one asking it receive a smaller quota than the production achieved in 2005. In 2000, when Lemarco bought Zaharul Liesti, the plant had a production capacity of 100 tonnes per day, and at the end of 2005 it reached a daily production of 400 tonnes.
Popovici is not ruling out the acquisition of another plant by the company over the following period.
Last year, Lemarco reached production of 125,000 tonnes of sugar, accounting for 22% in Romania's sugar trade balance, according to company information. Sugar production makes up more than 95% of the company's business. Lemarco was set up in 1990, being 100% Romanian held and operating in the sector of furniture production. In 1993, the company started importing raw sugar, which it processed in its plants of Romania. In 2000, Lemarco acquired Liesti sugar plant of Galati county, a moment when Atalanta Corporation US firm became one of its shareholders, with a 50% stake.
Lemarco
One of the top three players on the local sugar market
Posted 39% turnover growth in the first six months of this year, to 22 million euros
Reported income worth 4.4 million euros in the same period, 4 times higher than last year's
2005 turnover stood at 44.6 million euros, up 32% on 2004
In 2000 acquired Liesti sugar plant in which it has invested 4 million euros over the past 5 years
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