Holcim crosses 100 million-euro threshold

Holcim Romania, the local branch of the Swiss cement giant last year logged approximately 100 million euro turnover, up 13% from 2002, as construction works picked up speed in the second half and its own network of concrete stations expanded, general manager Kurt Habersatter said.

He added 2003 was seemingly “the best financial and operating performance year for Holcim Romania.”

The company improved its financial and operating results last year, given that Holcim and the other two cement producers witnessed a decline in Q1 sales by 30-35% on the average, due to the prolonged winter.

Holcim accounts for about one third of the cement market estimated to approximately 240-250 million euros and competes with Lafarge Romcim, the local branch of French Lafarge Group and Carpatcement, held by German group HeidelbergCement. The latest available data show Holcim to account for some 31-32% of the market, against Lafarge’s 33% and Carpatcement’s circa 35%.

The Swiss group entered the Romanian market in 1997 when it bought the cement factory in Turda and acquired control of Cimus Campulung in 1999. In 2000, it bought the factory in Alesd from Lafarge paying about $40 million for it as sources close to the deal estimated.

All in all, the Swiss at Holcim have invested more than 270 million euros in acquisitions, upgrades, environment protection and business development thus far.

Holcim Romania, which operates as an integrated company on the construction supplies market, currently owns three cement factories, 13 concrete stations (6 of which traditional and 7 environment friendly), as well as three aggregate stations.

It invested more than 50 million euros in the retooling of the grey cement production line in Alesd especially last year, as well as in refurbishing the delivery centre and opening a modern coal mill in Campulung. Holcim plans to invest another 40 million euros by 2006, its officials say.

At the end of last year, the Authority for Privatisation and Administration of State’s Interests (APAPS) officially verified the conclusion of the privatisation files on Holcim Ltd.’s acquisitions from the Romanian State, which acknowledge the investment effort of the Swiss company.

The cement market in Romania is entirely in private hands at the moment and ruled by three international giants, which hold three factories each.
adrian.mirsanu@zf.ro