Silvarom: 15m-euro turnover, down 20%

The furniture producer Silvarom Bucuresti estimates its turnover will fall by 15- 20% this year, to 50m RON (15m euros), due to a drop in exports and the repositioning of the firm on the domestic market. “Last year, we generated a turnover worth 60m RON and this year, if the second half goes well, we hope to derive 50m RON,” stated the company’s financial manager, Ioan Marginean. He says the entire furniture industry registered weak results during the first six months. At the beginning of this year, the company decided to redirect the entire output of home furniture production onto the domestic market, because exports registered a significant decline in the wake of RON growth against the euro, and also due to a rise in production costs. In the case of office furniture sales, Marginean specified that although works at several office buildings have been finalised, the fitting-out of office spaces has been delayed, but there are indications that orders for office furniture will increase in the second half of the year. Marginean also says the Giulesti-based plant is likely to be relocated outside Bucharest, or to an area where raw material is easy to procure.