Belgian group Carmeuse, one of the world''s major lime producers, will spend 27 million euros to retool the four lime plants it owns in Romania and implement environment protection norms.
The acquisitions made since they entered the market in 1999 has cost the Belgian-based company about 27 million euros, according to Carmeuse officials.
"The investment plan is divided in two: 20 million euros will be invested during 2005-2006 (55% of this amount having already been spent), with the rest of 7 million euros to be invested in 2007," Niculae Stinghe, general manager of Carmeuse Holding, the domestic branch of Carmeuse Eastern Europe, told Ziarul Financiar.
Carmeuse is present in Romania through two entities: Carmeuse Romania, the branch of Carmeuse Central Europe and Carmeuse Holding, a division of Carmeuse Eastern Europe, where the European Bank for Reconstruction and Development holds a 25% stake.
"This year, we expect turnover to grow 25%, to 22 million euros, amid the consolidation of the domestic market and higher production," says Stinghe. In line with data presented by Carmeuse Holding, the company''s lime production in the first half rose 12%, the equivalent of 1000,000 tonnes of lime. Over the past two years, the company has tripled turnover, from 7 million euros in 2003, to 22 million euros in 2005.
The lime market, put at 35-36 million euros, with growth rates of up to 10% per annum, has become highly attractive for strategic investors, given the projected growth of the construction materials market and Romania''s integration in the European Union.
According to the company''s officials, the total lime market saw a 10% increase, reaching 1.2 million tonnes, with Carmeuse Holding owning a 40% share of this market, with about 480,000 tonnes. Carmeuse owns four lime plants in Romania, in Fieni, Deva, Brasov and Campulung.
By March 2006, the Belgians will invest 10 million euros in the lime plant in Fieni, of which 6 million euros will be used to replace an oven dating from 1984, with the rest to be aimed at the retooling of the second oven and at the implementation of environment protection norms. "The plant in Fieni is a priority in terms of investments, since it is in the centre of the city, and pollution needs to be reduced as quickly as possible," maintains Stinghe.
In 2006, 9 million euros will be earmarked for the Brasov-based plant, where modernisation works similar to those of Fieni are planned. catalin.lupoaie@zf.ro
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