Losan Romania, a furniture company that is part of Spanish Grupo Losan, has announced the opening of a new facility in Brasov for the production of melamine boards and kitchen counters in a move to keep up with market trends.
Works are scheduled for completion by the end of August. The company chose not to reveal any details of the investment for the time being.
Grupo Losan is based in Spain and is the third largest group in the Iberian Peninsula in the wood processing industry, after Tafisa-Glunz and Finsa Group, and the leader of the veneer market. The group has six factories: in Spain, Romania, the Netherlands and South America.
Losan''s factory in Romania is located near Brasov, in Ghimbav, where it makes veneer boards for use in the furniture industry. The building of this factory began in 2000 and cost close to 4 million euros.
Manufacturing began in November 2001. The factory makes decorative veneers, of 0.2 - 1.5 mm thickness, as well as other types of veneer, depending on customer demand.
"The veneers are assembled so as to be able to make various types of boards for all sorts of surfaces, making them look like finest quality solid wood. Veneer boards are an excellent substitute for wood," explained Daniel Frunza, Losan Romania''s general manager.
The company believes its turnover will grow by up to 25% this year to reach a total of 30 million euros, a trend based on the boosting of production capacity and the increase in demand from the market.
The demand for veneer is increasing at some 2% a year, in line with trends on the furniture market, while at the same time the demand for various types of wood differs, said Frunza: "The demand for lumber from temperate climate areas (pine, beech etc.) is growing by about 4%, whilst demand for tropical wood is decreasing slightly."
The company''s turnover rose by 111% in 2004, compared with 2003 when it made 11.3 million euros.
"At present the demand for furniture is mainly for multifunctional, modern, easy to maintain and durable furniture. Consumers also favour natural products and seek natural-looking furniture. Due to the trend on the market we already started producing veneered boards," Frunza explained.
At present approximately 80% of the factory''s veneer output is exported to another company of the Spanish group.
"Domestic demand for these products is almost non-existent and nearly all the supply goes to export. This gives us a very good position in relation to our wood suppliers, which are the key to every business," added Frunza.
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