Lafarge Romcim sales climb 15.4% in Q1

Lafarge Romcim, the Romanian subsidiary of French Lafarge group achieved a 15.4% sales growth in the first quarter from the same period in 2005.

The increase in sales came as a result of the 13.8% increase in the amount of products delivered, as well as of other factors (price rises, changes of the conditions on the market), which together contributed 1.6%, company representatives say.

Lafarge Romcim estimates turnover to stand at some 680 million RON (190 million euros) in 2006, an increase of 7% compared to last year. The other divisions of the French in Romania will witness a faster growth pace, company officials say.

Lafarge is world”s largest cement producer and one of the leading players in the construction supplies industry.

The French group has been operating in Romania since 1997, having invested more than 300 million euros in the cement, concrete, aggregate, plasterboard or roofing system markets.

Lafarge is preparing an estimated 100 million euros for investments between 2006 and 2012. The investments will go toward environmental protection, in compliance with the environment standards required by the European Union, and to the improvement of the productivity and service quality. The French invested 20 million euros on the cement, aggregate, concrete and plasterboard markets last year.

Lafarge Romcim posted 10% increase in turnover last year to some 640 million RON (176 million euros), according to the officials of the company.

As for the cement price, the prices in RON for 2004 and 2005 kept relatively constant, despite the significant rises of electricity rates and fuel prices. The average cement price in 2005 stood at approximately 230 RON/tonne (ex-works), depending on type, special properties and packaging, Lafarge data reveals. Lafarge Romcim exports one million tonnes of cement a year, that is about 30% of the total output. catalin.lupoaie@zf.ro