David Brodetski, CEO of the Swedish group Lindab, which operatesin the steel industry and posted about one billion euros inbusiness in 2008, says that he has no intention of leaving themajor markets the group is present on, such as Romania, whichgenerates 5-10% of its revenues.
Brodetski, who took over as CEO of Lindab in the second half oflast year at the onset of the financial crisis, says the Romanianeconomy will have a harder time recovering, both because of thefinancial difficulties in Central and Eastern Europe and because ofthe domestic problems of the country that drove it to take the loanfrom the International Monetary Fund.
The business of the Lindab group fell by about 55% in Centraland Eastern Europe, with the most affected countries being Ukraine,Russia and Romania.
"The countries in Central and Eastern Europe were more affectedthan those in the West because banks had been too lenient ingranting financing and now are too cautious and have frozenlending. High interests and depreciation of local currencies haveled to a significant decline of the economies in the region,"Brodetski explains.
Lindab posted 63 million-euro turnover last year, down 6% from2007 and estimates the trend to maintain this year.
"Besides the problems CEE is experiencing, Romania also hasinternal problems that led it to take a loan from the IMF. Ibelieve Romania will take longer to recover than Poland and 2010will be a difficult year for the local economy. Still, Romania willremain a good market for us and we will keep our productionfacilities here," said Brodetski, who feels a long period of timewill be needed to reach the 2008 level.
"The most important thing now is not to lose importantresources. Even though the Romanian market has witnessed asignificant decline, we will continue to keep our position so as tohave an edge when the growth pace is resumed."
Lindab's executive believes that the current situation is goodfor the expansion of the Swedish group and says there are about 30companies in Europe that he is looking at in view of anacquisition.
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