French construction supplies giant Lafarge is considering building a plasterboard factory in Romania and is looking at several locations in the region for the investment.
The decision comes as a direct response to the large increase in the plasterboard consumption in Romania, from 3 million sqm in 1999 to an estimated 19-20 million this year.
The investment in a new facility in Romania may be worth as much as 30-40 million euros, the same as the entire plasterboard market, industry sources estimate.
"Romania is an interesting market for Lafarge and, under the circumstances, the group is considering increasing its current plasterboard production facilities. The local market is large enough to justify other production facilities other than the one which already exists," Lafarge Arcom Gips chief executive Sebastian Popescu told Ziarul Financiar.
The company has the only factory on the market, which is located close to Bucharest and was acquired by Lafarge from Arcom SA. The factory has a capacity of 3.2 million sqm, making it one of the smallest in the world, industry specialists say.
The pace of market growth of 25%-30% a year and the potential in Romania also prompted Rigips Romania, the local branch of UK company British PlasterBoards, to announce a 30 million-euro investment in construction of a factory in Turda from the ground up. Having studied the markets in the region for some years, the British company eventually decided to invest in Romania and are set to become producers instead of importers as of next summer. The factory in Turda was designed for an initial production capacity of 13 million sqm and should replace Rigips imports almost completely.
Lafarge Arcom Gips currently accounts for 28%-30% of the market, with the market estimated at 19-20 million sqm, or 35-38 million euros. The main competitors to Lafarge are Rigips Romania, Knauf (a German family business), Norgips (Norway) and the Turkish company ABS. The latest information shows ABS entered the market at the end of last year and has come to cover 6%-8% of Romanian market with imported products.
The same sources say Knauf and Norgips are engaged in a worldwide merger process, which, when completed, would create a single player that accounts for 30%-35% of the market in Romania.
"The Romanian plasterboard market has great potential, and increase to 30 million sqm over the next three or four years," Sebastian Popescu said.
adrian.mirsanu@zf.ro
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