The Adhesives division of Henkel Romania, part of the German-based Henkel group, will conduct investments worth around 10m euros this year in a new plant located in north-east Romania, which will eventually produce 200,000 tonnes per year, similar to the output of the Campia Turzii (Cluj county) plant, which opened last year.
Henkel owns another adhesive manufacturing unit in Bucharest, which produces 250,000 tonnes per year.
"This year, we'll make further investments and increase production capacities and our product range. At present, we are looking for land for an investment similar to the one carried out in Campia Turzii last year," stated Andrei Dumitrescu, marketing and sales manager with Henkel Romania's Adhesives Unit.
So far, Henkel has invested 30m euros in its adhesives unit in Romania. At present, the company has 600 employees domestically, with 220 working in the plants of Pantelimon and Campia Turzii.
"Domestic production accounted for 90% in the total volume of sales last year, whilst the rest was derived by imports from the group's other plants. In the coming period, the level of imports will shrink as a result of higher investments being directed towards the expansion of production capacities," Dumitrescu added.
This year, Henkel Romania, which includes all Henkel's domestic operations, forecasts a two-digit turnover growth, from 472m RON (141m euros), the level reached last year, when the company saw turnover advance by 36%, according to the company's chief financial officer, Nicolae Olteanu.
Last year, Henkel's results were boosted by the superior production capacities.
As part of Austria's Henkel Central Eastern Europe, the company last year generated EBIT worth above 90m RON (27m euros), compared to pre-tax profit worth 40.3m RON in 2006.
Henkel Romania's operations are divided into 3 units, namely adhesives-technologies, detergents and cleaning products, and cosmetics. Sales of the latter two are secured through imports.
Domestically, Henkel's most important rivals on the adhesives segment are Baumit, AdePlast and Baumix, while on the cosmetics and cleaning products segment the company competes with Procter & Gamble, Unilever and Colgate-Palmolive.
The adhesives unit, which registered 48% higher sales (in euros) last year, includes 3 subunits: construction adhesives, insulating products and professional adhesives, and commercial adhesives. The three posted sales increases of 48%, 55% and 100% (in euros) respectively.
At the same time, Henkel last year opened 3 showrooms for adhesives products in Bucharest, Ploiesti and Targu-Mures.
Henkel Romania was created in 1994, as a subsidiary of Henkel Austria, which in 1998 became Henkel Central Eastern Europe. Overall, Henkel CEE operates across 30 states.
Henkel Romania
Its adhesives unit will conduct investments worth around 10m euros this year in a new plant located in north-east Romania
The new plant will have a production capacity of 200,000 tonnes per year similar to the output of Campia Turzii plant (Cluj county), which opened last year
At present, employs 600 individuals domestically, with 220 working in the Pantelimon and Campia Turzii plants
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