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Somes Dej projects 20% growth in 2007

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08.11.2006, 18:27 13

Cellulose and paper manufacturer Somes Dej, part of the Serviciile Comerciale Romane (SCR - Romanian Commercial Services) group, posted nine-month turnover worth 27.9 million euros, similar to the value registered in the corresponding period of 2005.
"We are facing a serious shortage of wood, caused by the retrocession of forests and the increasing use of wood as fuel in the energy industry," Adrian Itu, general manager of Somes Dej, told ZF Transilvania.
Given the growth witnessed over the first nine months, company management estimates turnover will be around 35 million euros this year, similar to the value posted in 2005.
"We regard 2006 as a year of investments, which are expected to push the financial indicators up by at least 20% next year", Itu also stated.
According to the company official, the investments made in upgrading and retooling over the first nine months exceeded 5.6 million euros, but are bound to top 10 million euros by the end of next January.
Adrian Itu also said the company would launch silk paper next year.
"Once production of silk paper starts, we will be manufacturing the entire range of products from 15 grammes to 140 grammes. We intend to integrate part of our cellulose production into paper manufacturing," mentioned Adrian Itu.
Company management forecasts annual production of 20,000 tonnes of silk paper, which will be sold on both the domestic and foreign markets.
"Silk paper is used to wrap more sensitive products and we think we will be the only domestic manufacturer on this segment," Itu added.
The company saw a drop in turnover in 2005, chiefly caused by the devaluation of the euro, according to the managers.
"We tried to offset this phenomenon by adopting a new sales strategy and by refocusing on more profitable markets, such as the domestic one," Itu mentioned. Somes Dej posted operating income worth some 1.5 million euros, and the company budgeted 3.5 million euros in profit for this year.