Construction materials to peak in at least 5 years

Philippe Questiaux, chairman and general manager of Lafarge Romcim, estimates the Romanian construction materials market will peak in the next decade.

“The construction materials market is witnessing a positive progression that will have its peak during the period 2011-2014. This will happen if the pace of growth is equal to, or even exceeds the annual average increase of the last four years and if Romania”s overall economic growth reaches around 4% per annum,” considers Questiaux. In this context, cement consumption in Romania is on average around 300 kilograms, very close to the consumption per capita in France, 350 kilograms.

Lafarge is world”s biggest cement producer and one of the leaders of the construction materials industry. The French group has been operating in Romania since 1997, and has invested over 300 million euros in cement, concrete, aggregates, plasterboard and roof systems.

The group for this year estimates turnover worth around 680 million RON (190 million euros), up 7% from last year.

“We estimate growth of turnover by 5-7%, but this is a minimum estimate launched at the beginning of the year. Considering volumes posted in late March, sales have big a chance of improving,” Phillipe Questiaux, chairman and general manager of Lafarge Romcim, the domestic branch of Lafarge French group, told ZIARUL FINANCIAR. The other units the French own in Romania will also see speedier growth.

“The projection for this year”s consolidated growth of cement, aggregates and concrete, plaster and associated systems business lines, is much more optimistic. This is because of the growth expected on the plasterboard market, as well as in the volumes of plasterboard plates and systems, which are benefiting from boosted production capacities in 2006,” specifies Questiaux.

Former deputy chairman of the plasterboard unit of the Euromed area (North Africa) during the 1997-2001 period, Phillipe Questiaux, 56, came to Romania in 2002.

The Lafarge Romcim chairman announced he would prepare investments worth around 100 million euros during the period 2006-2012, aimed at environment protection – alignment to environment norms imposed by the European Union and at improvement in production and services quality. The French last year invested 20 million euros on the cement, aggregates and concrete and plasterboard markets.

Lafarge Romcim last year posted 10% turnover growth, to around 640 million RON (197 million euros), according to the company”s representatives.

Lafarge Romcim

* Projects turnover growth by 7% to 680m RON (190m euros) for this year

* Preparing investments of around 100m euros for the period 2006-2012

* Last year invested 20m euros on cement, aggregates and concrete and plasterboard markets

* Last year registered 10% higher turnover to around 640m RON (176m euros)

* Annually exports 1 million tonnes of cement, accounting for about 30% in production volumes