VEKA Romania, the domestic subsidiary of Germany's VEKA PVCprofile producer, in May 2008 dropped a 20m-euro investment in aplant near Bucharest, despite the advanced stage of the project.The reason? Even though in Romania the market peaked at 1bn euros,the financial crisis the US and Europe were going through made theGermans put their investment on hold. The decision to freezeinvestments proved to be a wise one as in 2009 PVC profile demanddropped by 50% and this year may bring a new 10-20% decline. Whilethe plant was no longer built, when the market reaches 70% of the2008 level, in two or three years as estimated, and demand issteady, Romania will be the first country where VEKA group, with700m-euro annual turnover, will expand. The value of VEKAinvestments in Romania amounts to some 10m euros. The companypositioned itself on the medium and luxury client segment. "Around70% of our sales are directed to private projects and just 30% tosingle-family homes," states Gabriel Nicolaescu, deputy generalmanager with VEKA Romania. The company in 2009 saw turnover go downby 42% to 26.3m RON (6.2m euros), but revenues dropped by 35% toaround 13m euros.
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