The current effervescence of the constructions industry is also starting to be felt at the level of the financial results reported by manufacturers of bricks, autoclaved cellular concrete (ACC) and paving stones.
Many constructions materials producers have logged double or even higher growth in profits for the first half of this year. Producers are announcing investment plans meant to bring them a bigger slice of the market, in the context where growth ranging between 7 and 8% is projected for the constructions sector, at least for this year.
Elpreco Craiova registered a 41% increase in turnover in the first half of this year, reaching 250 billion ROL (6.2 million euros), with profit having doubled in comparison to the same period last year, to 33 billion ROL (0.8 million euros). Elpreco, held by Broadhurst investment fund, has earmarked 7 million euros for a new ACC production line. Another 7 million euros are scheduled for investments in expanding the paving stone production capacity and building a sewer tube assembly line in the next few years.
Simcor Oradea, a producer of concrete components used in constructions, ended the first half with a 25% increase in revenues, which reached 135 billion ROL. They similarly saw a 13-fold increase in profits, which stood at 3.4 billion ROL. Elpreco and Simcor have also brought significant gains to investors on the RASDAQ, where these companies are listed.
Alongside several foreign companies, Elpreco and Simcor are running for the take-over of the last state-owned constructions company, Soceram Bucharest. Soceram's portfolio includes four plants manufacturing bricks, ceramic tiles, ACC and other constructions materials made of burnt tile.
Many foreign companies are this year building new production capacities, given that existent capacities are insufficient for the market's potential. The Austrian company Wienerberger is investing 18 million euros in a bricks plant near Targoviste, while another Austrian firm, Bramac, has finalised an investment worth 6 million euros in a concrete tile production line near Sibiu. Rigips Romania has also announced investments standing at 30 million euros in a plasterboard plant in Turda.
One of the most important firms in this domain, the French group Lafarge, announced 28% higher turnover in this year's H1. Lafarge has investment projects that will amount to 45 million euros by 2006.
vlad.nicolaescu@zf.ro
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