Holcim turnover exceeds target for 2004

Holcim Romania, the Romanian branch of Swiss construction materials giant Holcim Ltd, has reported a record turnover growth of 30% for 2004. The high growth brings their turnover for 2004 to 130 million euros, in line with the company”s final and audited results.

Initially, back in January, Holcim officials expected turnover to reach only 118 million euros.

Last year”s financial and operational results were the company”s best since the Swiss giant entered the market in 1997, according to Holcim officials.

Holcim and German group HeidelbergCement have so far reported business volume increases of over 30%, amid around 10% higher sales of cement in 2004, double the normal annual rate for this industry.

The cement market, which sees annual sales of almost 300 million euros, is dominated by three international players: Lafarge (France), HeidelbergCement (Germany) and Holcim (Switzerland), each with similar market shares. Cement imports from Ukraine have grown strongly over recent years and have gained market share, fuelled by rising demand for construction materials.

“In 2004 investments amounted to 26 million euros: for 2005 we plan to invest over 32 million euros in launching three environment-friendly concrete-making stations in Bucharest-Pantelimon, Timisoara and Targu Mures and in modernising the fresh concrete-making station in Brasov. Other investments will be made in modernising production lines at the cement plants based in Campulung and Alesd and expanding existing facilities for the co-processing of a wide range of waste,” said Markus Wirth, the Holcim Romania country manager. Since acquiring the Turda cement plant in 1997, Holcim has continuously modernised its business, investing some 300 million euros in Romania to date.

The company currently owns three cement plants, 13 concrete stations (of which 8 are environment friendly) and 3 aggregate stations. It has 1,400 employees.

The local branch of the Swiss group began production in Alesd last year using an advanced cement production line following investment of 70 million euros.

The Alesd plant was in effect the first cement production plant to have been largely reconstructed and retooled. The Swiss acquired the plant in 2000 from French group Lafarge.

Since 1997 Holcim has invested over 17 million euros in environmental protection works.

The demand for construction materials is rising quickly in Romania, making the market more attractive to the eyes of foreign investors. adrian.mirsanu@zf.ro