Exchange rate halts Silvarom exports

Furniture manufacturer Silvarom Bucuresti, one of the leading players on the local market, has, starting this year, given up exports, which fetched it approximately 8 million euros, due to the trend of the foreign currency exchange rate. It is the first major player to disclose a significant strategy change of this type. “Last year, exports accounted for 50% of our turnover, and we have currently halted exports. We gave up this segment of our business solely because of the trend of the exchange rate,” Ioan Marginean, financial manager for the producer, told ZF. The company has a few more external contracts to fulfil, but once they have been completed, Silvarom will cease exporting. As for returning to the foreign markets, Ioan Marginean says it would only be possible if they became profitable again. With regard to the attractiveness of Eastern markets, which other producers have turned to, the Silvarom representative says it is rather hard to penetrate these markets whilst preserving your position, due to the fierce competition, the offer, which is very different compared with what Western markets like, and the customs duties that are levied per kilo.