Czech Hobas buys bankrupt Romanian Hobas plant

Hobas Czech Republic, subsidiary of the Swiss maker of fibreglass reinforced plastic piping has recently taken over in a $4.89m transaction the Bucharest-based factory of Hobas Tub Romania, which had gone belly up in the fall of 2003.

The factory, an over $15.5 million investment, had become the “apple of discord” between its main shareholders, Swiss Hobas Group and two investment funds over the last few years, due to its losses and huge debts.

Hobas Czech Republic bought the factory and is planning to resume production in mid March, sources with the Hobas Pipe Systems SRL, a company set to operate the facility in Bucharest, told Ziarul Financiar.

“We were expecting our competitors, such as Saudi Amiantit Group, to participate in the sale but they did not. The sale price of the assets, which included the matching plot of land was the same as the starting price, $4.89 million, as there was only one bidder, Hobas Czech Republic,” the quoted sources added.

The company will start hiring on March 1, and intends to begin production with a staff of 10 or 12, management included.

“As the output of the factory gets closer to the maximum capacity, which would mean an annual budgeted turnover of about 5 million euros, the number of employees will go up, but we don’t want it to exceed 30,” the sources said.

This year’s target is over 3 million euros in turnover and some profit, given that approximately 70-80% of the output will be sold on the domestic market, while the rest will be exported. The foreign markets considered at first are Bulgaria and Greece, though the market in the Republic of Moldova is also on the list of possible outlets. Investments in the facility in Bucharest “will not be large, as funds will be allocated for repairs or other works,” Hobas representatives in Romania say.

How come Hobas Czech Republic participated in the tender and bought the factory in Bucharest? “The Czechs have always had a keen interest in this part of Europe. The Austrians, for instance, are more interested in markets such as Italy or France,” the quoted sources said.

The history of Hobas’ Romanian factory begins in 1997, when a joint stock company, Hobas Tub Romania was created, whose shares were divided between Hobas Management Austria (some 41%), and investment funds Romanian American Enterprise Fund (RAEF) and Romanian Investment Fund (RIF), each of which holding 23.54%, while the Privatisation Authority (APAPS) and Financiara SA (arm of the late Bancorex) had over 5%, according to the latest info available.
adrian.mirsanu@zf.ro