Sarcom Ramnicu-Valcea paint and varnish producer projects turnover growth by 20 percent, to 30.7 million RON (8.5 million euros) for this year, according to the company''s representatives.
The company is a family business that was set up in 1993 by Marinica and Aurel Potop brothers, each owning 50% in it. Sarcom has been manufacturing Sticky-branded paint, varnish, diluents, primers and adhesives since 1998, with raw materials suppliers including companies such as BASF, Rhodia, Hoecst or Bayer.
Sarcom doubled its income last year to 4 million RON (over 1 million euros), against turnover worth 25.6 million RON (7 million euros). "Last year''s turnover growth was due to the rising sales of products we manufacture, particularly washable paint that weighs 60% in turnover," Marinica Potop, the general manager of Sarcom, told ZIARUL FINANCIAR.
The company announced it would invest one million euros in production retooling and environment protection norms this year. Sarcom has around 65 employees. Paint consumption per capita surged by over 10% last year, but is still way below the level of Hungary, Poland, the Czech Republic or Western European countries. In Romania, paint consumption per capita is five times lower than the level posted in the Czech Republic, according to the latest data available. Paint consumption will continue to grow over the following years amid the need to restore old buildings and the high dynamics of civil and industrial constructions, according to market sources.
The Romanian paint and varnish market generates annual sales worth above 140-150 million euros, in line with some estimates. The most important players include Köber Piatra-Neamt, D?fa Romania, Policolor or Guzu Chim.
The potential of the market resides in that Romania is witnessing a rise in paint demand, though consumption is still one of the lowest in Europe, averaging only 2.8 kg per capita, compared with 9 kg in Hungary, 12 kg in the Czech Republic, 17 kg in Germany, the latest data available show.
The main paint and varnish manufacturers have been wooed lately by several financial and strategic investors, interested in entering a business boasting high profit rates and growth potential. catalin.lupoaie@zf.ro
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