The decrease from the construction sector doesn't concern the building materials manufacturers, on the contrary Cesarom, Henkel and AdePlast announced that this year they will begin the works to new production facilities. Since 2012, the new factories will significantly increase the productive capacities. It remains to see if the economy will allow that these lines continuously operate.

It's no more a secret that the volume of constructions from residential segment unceasingly decreased in the last three years. And the trend will continue, at least on short time. According to data from the National Institute of Statistics, the number of building permits for residential buildings issued in the first four months of this year decreased with 6,8% compared with the same period from 2010. Theoretically, these figures should cause concern among building materials manufacturers, whose products mainly arrive to construction companies or to final user. But if we look at the plans of big companies from the field, the concern is not the password, on the contrary.

For example, Henkel Company, with activities on the adhesives and mortars segment, but also on detergents and cosmetics, announced that in October it will start the works to a new facility, where it will manufacture adhesives and mortars. Located at Roznov, near Piatra Neamţ, the factory will be built on a land of 36 hectares, purchased in 2010, and it will require an investment of ten millions Eur.

European funds

Approximately one third from this amount – three millions Eur – represents European money. In fact, many great players from various areas used this type of financing. From 2008 onwards, The Management Authority of Sectoral Operational Program “Increasing Economic Competitiveness” (AMPOSCCE) received about 4.500 projects submitted by large enterprises, according to Dan Stolojanu, appeal responsible person within AMPOSCCE. “The budgets of the projects submitted exceeded 4,7 billions lei, considering a possible maximum amount to be paid of 450 millions lei”, says Stolojanu.

But large companies also invest if they don't have European funding. Is the case of Austrians from Lasselsberger, present in Romania through Cesarom brand, who recently announced an investment of 14 millions Eur, from its own funds, in order to inaugurate a new production line of ceramic tiles in Cluj area.

In turn, the businessman Marcel Bărbuţ, Adeplast owner, is decided to renounce to a percentage between 20-30% from the company's shares in order to ensure the full financing of a new factory of adhesives and dry mortars in the center of Moldova. “I have already negotiated with a foreign investor and I'm expecting that this year we'll complete the transaction”, said Bărbuţ, who aims to develop AdePlast both in Republic of Moldova and in Ukraine, where contracts are already in progress.

The businessman considers that it's important to have a factory in the heart of Moldova and he says that he already arranged for the land, and this year he will start the construction works of the production facility. “It's about three hectares near Roman”, Bărbuţ revealed us. The capital of the investment will range between 10 – 12 millions Eur. Currently, Bărbuţ builds a polystyrene factory in Ploieşti, following an investment of 4,5 millions Eur. The estimated term of completion of the factory is August 2011, and the productive capacity will raise to 700.000 cubic meters of polystyrene per year.

Find out on forbes.ro why Bărbuţ aims the extension in Hungary and the purchases he will make.

These investments confirm a new market trend, namely the fact that large investors show again an interest for new production facilities, fact which has a significant impact on the demand of lands on which develop new industrial factories or spaces to rent. “The demand in the industrial and logistic segment is directed especially towards the province and it comes from companies from the production field, especially from automotive – suppliers of giants from automotive industry – and in the building materials segment”, explains Ilina Păun, managing director of Colliers International Real Estate Consultancy Company.

The new facilities – both Henkel and Cesarom factories – will be ready during the year 2012 and they will increase annual productive capacities to 700.000 tons of mortars and adhesives (Henkel), respectively to 8,5 millions cubic meters of ceramic tiles (Cesarom). Adeplast also proposed itself that the production facility from Moldova enter in operation in May next year. Currenty, the annual productive capacity of the company is of 700.000 tons of adhesives and dry mortars, but “it will significantly increase in 2013”, as Marcel Bărbuţ says.

2013, the year of great hopes

But all these will happen over two years. For now, things remain dim: in 2010, constructions market registered a decrease of 15%, according to the estimates made by Andrei Dumitrescu, sales & marketing manager for Henkel. Eduard Măcărescu, director of operations at Cesarom also talks about a decrease. “In 2011, ceramic tiles market will decrease with 10% compared to the last year”. In 2010, the profile segment registered a turnover of 100 millions Eur and a sales volume of 22 millions square meters.

Interest for lands

Great investors show again an interest for new production facilities, fact which has a significant impact on the demand of lands where shall develop industrial factories or spaces to rent.

Article taken from the site: www.fobes.ro