Arabesque allocates 20m euros for two new stores

Arabesque, the largest construction materials distributor on the market, has budgeted investments worth 20 million euros for this year to build two new storage facilities, after last year it allocated 24 million euros for the opening of three centres in Oradea, Baia Mare, and Pitesti.

The company did not specify the locations of the future centres, but the new investments will bring the number of Arabesque showrooms to 20.

Arabesque expects a similar turnover in 2010 as that recorded in 2009, when the business contracted by 25%, to 412 million euros. Arabesque's turnover has again fallen below the half a billion-euro threshold, which it managed to exceed in 2008, when it posted 550 million euros in business. "For 2010 we target the same turnover as in 2009, expecting a potential decline in the first half of the year and a slight recovery in the second half. "The 2010 progression will depend very much on the European economic context, on the political stability in Romania, the relaunch of lending, the progression of the exchange rate, and on the governments' measures to relaunch the economy," says Cezar Rapotan, owner and general manager of Arabesque.

However, the company will halt its expansion abroad, where it already has 22 subsidiaries in the Republic of Moldova, Bulgaria, Ukraine, and Serbia, which generate 18-20% of the overall business, i.e. around 80 million euros.

Rapotan believes the state needs to intensify its investment programmes and that any initiative of the "First Home" type is welcome as long as it is an incentive to investments. "The 'First Home' scheme should only target newly-built homes completed in 2009-2010."

Last year, the company fully felt the decline in investments on the construction market and had to resort to major spending cuts.

The abrupt decline in new investments and the rise in the share of renovation works were also reflected in the structure of Arabesque's sales. The best-selling construction materials in 2009 were those used in renovations, such as paint, plaster, polystyrene, while materials used for new construction projects sold less well: cement, bricks, ACC.