The main pipe makers posted good results for last year, confirming the positive trend followed by this industry in Romania over the last few years.
Silcotub ZalAu and Artrom Slatina, the main producers of pipes listed on the Bucharest Stock Exchange posted substantial growth in turnover and higher profits than in 2004. Silcotub Zalau, part of the largest pipe maker in the world, Tenaris, made 6.44 million-euro (23.2 million RON) net profit lat year, compared with losses of 2.8 million euros (11.4 million RON) in 2004.
Therefore, only a year since takeover by Tenaris it became profitable again, after having posted losses for two years in a row.
The turnover of the company went up by 22.5% in 2005, to a total of 141.9 million euros.
Exports accounted for a significant share of its sales. Silcotub makes unwelded carbon steel and low-alloy steel pipes used in the construction industry, in petroleum and gas drilling and in the power, chemical and machinery building industries.
About 70% of the company''s output goes to foreign markets such as Western Europe, North America and Eastern Europe. Its main customers on the domestic market are Petrom Comtech and COM-GAZ.
The company was acquired in 2004 by international group Tenaris, the largest manufacturer of pipes in the world.
The other major producer of pipes listed on the Bucharest Stock Exchange, Artrom Slatina, controlled by Russian TMK Group, world''s second leading pipe manufacturer, posted a 96% increase in net profits in 2005, compared with 2004.
The company made 4.86 million-euro (17.6 million RON) net profit last year, following a significant sales increase.
Artrom''s turnover stood at 104.5 million euros (378.8 million RON) last year, an increase of 70% on 2004, though still lower than the budgeted 112 million euros. The growth in the turnover and sales of Artrom was made possible by the investments of the company in broadening its product range and in boosting the added value of the products in its portfolio.
Unlike Silcotub, which mainly manufactures large industrial pipes, Artrom makes hydraulic and mechanical pipes for the automotive industry and for the precision industries, and is one of the main producers of such pipes in Europe. Russian TMK Group invested about 6 million euros in Artrom over the last four years to upgrade the already existing capacities.
The company also plans to launch new types of products on the market and has a 30 million-euro investment plan to convert a production line. TMK also controls Combinatul Siderurgic Resita (Resita Steel Plant) in Romania.
Silcotub and Artrom were among the top performers on the Bucharest Stock Exchange, providing their investors with 230% and 130% yields respectively.
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