Two Taiwan-based companies in control of Romcarbon

Two Taiwanese-capital companies last week came to hold more than half in the capital of the only Romanian gas mask producer, Buzau-based Romcarbon. Living Plastic Industry, a Taiwanese-capital company last week came to hold 38.3 percent in the Romanian company Romcarbon.

Another Taiwanese-held business, Unitai International, holds another 12.5 percent. The two companies are now in control of more than 51 percent in Romcarbon’s capital, but their representatives say they are in no way connected. Besides gas masks, Romcarbon is also the only Romanian supplier of active coal and manufactures packing foil and automotive engine filters.

Living Plastic Industry took over the 32 percent from the Romcarbon Employees’ Association through a novation contract, which means it agreed to undertake all the obligations deriving from the privatisation contract along with the stake. Cristinel Dobrota, manager with Living Plastic Industry, says the company gave back to the employees the 6.8 billion ROL they had already paid to the Privatisation Authority (APAPS), paid the overdue instalments worth 4 billion ROL and is to pay three more instalments worth 2.5 billion ROL each, in addition to interests. All in all, this makes up more than 18 billion ROL (0.5 million euros).

Officials of Living Plastic Industry say they are planning to invest 300,000 euros in Romcarbon in order to produce expanded polystyrene, which is used for packing fruit and meat in supermarkets, for instance. The cash shortage Romcarbon has been experiencing lately might entail additional investments and the new shareholders say they are contemplating the possibility of making new investments in producing automotive filters. Living Plastic Industry is currently employing more than 500 people and is already making several types of plastic packaging in Buzau, part of which are being made in one of Romcarbon’s productive facilities. Another significant shareholder of Romcarbon besides the Taiwanese is SIF (Financial Investment Company) Transilvania, which holds 28 percent.

The price of the Romcarbon shares has tripled on the RASDAQ market over the last twelve months, as many investors were betting on an improvement in the financial situation of the company following the war in Iraq, which induced a surge in the demand on the gas mask market.

In the first half of last year, Romcarbon was registering a 13 percent turnover decline to 137 billion ROL, while profit amounted to 3 billion ROL.
vlad.nicolaescu@zf.ro