Belgian-born Marc Desenfans, who came at the helm of Unilever'sdomestic subsidiary four months ago, says he is consideringopportunities to enter new market segments in Romania and stillexpects to see profit in 2009.
Unilever consumer goods producer plans to boost exports from theplant in Ploiesti, so that in the following years the Romanianmarket may contribute just 50% to the turnover of South-CentralEurope (USCE), from 75% at present.
The Bucharest offices coordinate Unilever's operations on eightBalkan markets, which last year generated turnover close to 192meuros.
"Romania still has the advantage of low costs, as a productionlocation. Our objective is to boost economies of scale in Ploiestiplant," says De senfans.
In the past five years, the company has doubled its domesticproduction capacity and meanwhile USCE sales have risen by 70%. Inthe next five years, Desenfans wants to balance out turnoversgenerated by USCE.
He maintains the Ploiesti production platform is seen by the restof the company's subsidiaries as one of the most efficient inCEE.
This year's export deliveries increase was also made possible bythe relocation of two margarine production lines from CzechRepublic after an Unilever plant was closed there, toPloiesti.
The producer's representatives specified 18 jobs would be thuscreated in Ploiesti.
Desenfans says the weight of foreign markets in the business willbe raised also because of the stepped-up marketing efforts incountries such as Serbia, Bulgaria or the Republic ofMoldova.
The producer has recently rented over 30,000 square metres ofstorage space in Ploiesti West Park project, being the first tenantof the new logistic park of Prahova. The investment entails thecreation of a regional distribution centre by transferringoperations from four warehouses to one.
"Increases are ever harder to achieve as consumers' purchasingpower shrinks. This makes us rethink our strategies for eachcategory (...)," Desenfans states.
Unilever has increased the number of promotions particularly forpremium products this year and in terms of human resources,Desenfans says there is no question of mass job cuts.
Last year, the company saw its net income plunge, from 9.4m eurosin 2007 to 0.9m euros. Desenfans estimated USCE would not slip intothe red. He is cautious in projecting this year's sales dynamics."I believe the worst is over on the Romanian market, but I do notsee significant consumption rebound earlier than late 2010. For theRomanian subsidiary, next year will be better than 2009," Desenfanssays.
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