Piatra Neamt-based Kober company, a varnish and paint producer, among the top two players on the market, announced it would invest some 10-12 million euros to develop the biggest plant on the Romanian market.
“In the wake of the extremely strong growth in demand for coating products (paint, primer, varnish) on the market, Kober decided to expand its production capacities. To this end, it acquired Melana 5 unit of Savinesti chemical platform, located near Piatra Neamt, following a tender. In this location, Kober SRL plans to develop the biggest production facility on the Romanian varnish and paint industry, with annual production of more than 120,000 tonnes,” Aurel Kober, owner and founder of the varnish and paint business, told ZIARUL FINANCIAR.
The deal through which Kober took over Melana 5 plant is put at approximately 0.58 million euros, with the production area of the facility standing at 16,000 square metres. Such a project would double production capacities in Romania, estimated at around 100,000 tonnes in 2005, according to some industry sources.
The varnish and paint market will this year register sales revolving around 170-180 million euros, with Policolor Bucharest, Kober, D?fa and Fabryo Corporation (the former Guzu Chim) as the main players.
According to the latest data available, domestic demand amounts to 150,000 tonnes per annum.
Romanian paint and varnish companies are posting turnover growth rates of up to 30%-35% per year, amid the rising demand on the construction market.
Consumption is still low compared with other European markets, hence the huge growth potential.
In its turn, this potential is permanently fuelled by the renovation of old buildings and especially by the large residential projects, a very lucrative business in Romania at the moment.
The huge potential of the varnish and paint market has stirred a strong interest on the part of investment funds, which have made two top acquisitions on the market over the past year. As a matter of fact, of the top four players, Kober is the only one not part of the portfolio of a financial investor.
Kober in the first seven months of this year posted 34% higher turnover against the similar period of last year. Last year, the Piatra Neamt-based varnish and paint producer reported net income worth 2.3 million euros amid turnover revolving around 29 million euros.
In terms of structure, the domestic varnish and paint production is getting close to that of the European Union.
Decorative products account for 63% of the production in Europe, while wood products have a weight of 6%, car OEM-5% and car refinishing 2%, according to the data presented by some market players.
Kober was set up in 1991 by Aurel Kober and has around 450 employees, the latest data available reveal.
Kober
A business founded in 1991 by Aurel Kober, an engineer
Has 450 employees
Acquired assets from Savinesti chemical platform to expand production
Invests 10-12m euros in a facility with annual production of 120,000 tonnes
Posted 34% higher turnover in the first 7 months
One of the biggest players on a market put at 160 million euros
The only business of top four that is not controlled by an investment fund