Lafarge: Private sector will bring about growth again

Phillipe Questiaux, president and general manager of Lafarge Ciment, the largest cement producer on the Romanian market, says 2009 is the first year since the company's entry onto the Romanian market in 1997 when profit is down, amid a 28-30% sales decline against last year. Lafarge Ciment is the fifth largest company in Romania in terms of net profit made in 2008 - 163.9 million euros, but this year the cement industry has been significantly affected by the decline in consumption by 30% against last year. "It is for the first time since our entry onto the Romanian market that we will see a decline in profit and turnover. 2010 will not differ in terms of consumption level, and we do not expect major changes to occur. I think only in the second half of next year will we see a rise, with 2011 to be the year when the constructions segment recovers," Questiaux says. He did not, however, specify what the profit would be, amid a 45% net profit margin recorded last year. Questiaux believes that after the elections the government will have to use European funds much more efficiently, by co-financing infrastructure and development projects. "In particular, I am talking about funds for motorways and for national roads, which are the only solution for a faster way out of the crisis. But it is the private sector that will generate a return to growth, because there is still a lot to be done about the shortage of homes, commercial space and office space."