Comceh, a Calarasi-based paper producer and one of the leading players in the paper industry, has estimated a turnover worth 40m euros for this year, a 15% increase on 2006.
In the first four months of 2007, the company derived a turnover worth 11.8m euros, 44% higher against the same period last year, when it generated 8.2m euros.
"The figures we posted in the first four months are 2-3% higher than the projected budget for 2007. This year, we expect to reach a turnover worth 40m euros," stated Antonio Romagnolo, general manager of Comceh.
He specified that these figures were registered amid the introduction of new products on the market and the rising presence of Comceh products in modern retail.
Bringing the domestic production facilities up to the standards of the EU countries will require massive investments, and players' survival on the market will depend on their capacity to operate such investments.
"Some companies will be forced out of the market or in any case will see sales fall due to the lack of investments in equipment for high quality products, which are in rising demand from Romanian consumers. The capability to invest in new products will have a significant impact on the development of producers," Antonio Romagnolo told ZF.
As early as of 2005, several companies were forced to operate permanent or temporary shutdowns in production.
In 2006, companies including Ambro Suceava, Celhart Donaris Braila and Celrom Drobeta-Turnu Severin experienced such situations, according to the data released by the representatives of the Cellulose and Paper Industry Employers' Association (ROMPAP). However, Romania continues to be attractive to international players.
"Romania is one of the most attractive markets for cellulose and paper producers, owing to the fact that consumption per capita, is soon expected to match the Western European level. At present, the average annual consumption of tissue paper in Romania and Eastern Europe stands at 3 kg per capita, as compared with 18 kg in Western Europe," explained Romagnolo.
Rising utility prices and an accelerated shortage in domestic raw materials are visibly reflected in the industry's profit margins, which remain low, but constant, and is simultaneously reflected in the progress of the turnover.
In 2006, Comceh derived a turnover worth 34m euros, almost twice the level of 2005, amid an income of 0.9m euros.
"Exports now account for 25% of the turnover and we expect this to continue at the same level this year," said Romagnolo. "Exports are limited to small distances because of high shipping costs," he added.
Comceh manufactures finite paper products under its own Volare, SunFlowers, Onda and OndaCasa brands, and also semi-fabricated products, which are used by other firms.
The company currently owns two production facilities in Calarasi.
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