ZF English

Wienerberger trying to meet soaring demand

24.08.2006, 19:29 12

The revenues derived by Wienerberger in Romania in the first half of the year account for about 2 percent of the global results posted by the Austrian group.
"The main factor that pushed turnover up in the first half was the high demand for bricks on the construction market. We are having a hard time trying to meet this soaring demand," stated Daniel Catanas, general manager of Wienerberger Sisteme de Caramizi (Wienerberger Brick Systems).
The company in August opened a new plant in Sibiu, following investments worth around 18 million euros.
"For the time being, the Sibiu-based plant is not operating at full capacity, with production to be gradually increased over the following months," states Catanas.
The Austrian group owns two production units in Romania, in Gura Ocnitei (near Targoviste) and in Sibiu. Having opened the plant based in Gura Ocnitei, Wienerberger became the biggest producer of ceramic blocks in Romania.
At the end of last year, Wienerberger Sisteme de Caramizi announced it was in talks to take over some companies or plants, being also interested in greenfield investments on the Romanian market.
Austria's Wienerberger, the world's biggest brick producer, is interested in investing around 20m euros in a brick plant in Tritenii de Jos, a locality situated on the borderline between Cluj and Mures counties, according to some market sources.
The plant will have a production capacity of 140 million units per annum and will spread on some 30 hectares. The Austrians will decide on the plant in Tritenii de Jos in the second half of this year, according to the company's representatives.
Wienerberger witnessed 80% sales growth in the first half of the year compared with the corresponding period of 2005.
Due to the rising number of new constructions, the brick market last year surged 10-20 percent, in line with company estimates.
Wienerberger entered the Romanian market in 1998 and has so far invested over 38 million euros.
The Austrians in 2004 announced they would increase their presence on the Romanian market, with investment plans set to total 100 million euros by 2009.
Wienerberger Sisteme de Caramizi has 205 employees at present, of whom 170 work in the two plants and the rest in administrative and managerial structures, according to the latest available data.
Wienerberger Sisteme de Caramizi is 65.08% held by Wienerberger group and 34.92% by the EBRD.
The Austrian group is present on 24 markets of Europe and the United States, where it operates more than 230 production units.

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