Logan boosts Rombat profit to 3m euros

Rombat Bistrita, a car battery producer, last year registered profit worth 3 million euros (10.8 million RON), 38% higher year-on-year.

At the same time, the company”s turnover advanced by almost 25%, to 26 million euros.

Rombat sales last year totalled 930,000 units, of which 243,000 were exported to France, Italy, Belgium, Portugal and the Republic of Moldova, according to company representatives.

Rombat is the only supplier of car batteries to the Dacia Renault group, for which it delivered 180,000 units last year. This year, the company”s officials hope to deliver 260,000 units to the French group, in the wake of rising car production.

“The number of cars that have been used for a while and go through batteries fast by reducing their lifetime will increase,” says Ioan Repede, general manager of Rombat. In this context, the company”s turnover is likely to go up this year to 112 million RON (over 31 million euros).

The company has earmarked investments worth 3 million euros for this year, primarily to expand production capacity.

Last year Rombat undertook an important investment of around 2 million euros in order to launch a new type of calcium battery. Subsequently, the calcium technology was expanded to the entire range of car batteries that Rombat produces.

On the OEM segment, Rombat also works with Tractorul Brasov, as well as Dacia-Renault, and the company”s representatives are looking to add a new customer this year. The company is active in the replacement market, of which it accounts for a 60% share, according to information released by Rombat. Its main customers in this sector are RATB and CFR.

Rombat also owns a car service network made up of 80 units countrywide. Rombat”s main competitors are both companies importing international brands, as well as brands that are produced or assembled domestically.

Domestic manufacturers of accumulators were last year affected by the considerable growth of the domestic currency against the euro, which boosted imports of accumulators. Rising sales of new cars in turn diminished demand for batteries, but this did not hurt Rombat, which is a supplier for Dacia-Renault.

The company in 2003 started embracing an active diversification policy, by opening a construction materials warehouse.

Rombat commercial centre was launched three months ago, selling construction materials and materials for sanitary and electrical installations.

In early 2005, the Rombat Automobile company was set up, which attained a concession from Porsche Romania to import the Volkswagen brand to Bistrita-Nasaud county.

The new company opened a showroom and a car service shop in Bistrita last May, following an investment Rombat officials put at 2m euros.