Lafarge Gypsum International, a division co-ordinating the global gypsum operations of French group Lafarge is preparing to sell 90% in domestic producer Lafarge Arcom Gips to Lafarge Romcim.
This move might mean the operations of the French giant on the Romanian market are moving towards a new phase by the creation of a local decision-making centre at Lafarge Romcim, which should co-ordinate all the French group’s operations in this area. This is actually what its direct competitors, Holcim Romania and Carpatcement Romania are doing, too. Lafarge Romcim’s officials, however, say the move is part of a regrouping of the operations on the Romanian market.
The French group is already carrying out an over $150 million business volume in the cement, lime, concrete and aggregate industry, to name but a few.
“Lafarge Romcim will take over 90% in Lafarge Arcom Gips SA for the price paid by Lafarge Gypsum International to Arcom Bucharest SA. This operation is in line with the will to progressively regroup Lafarge’s industrial interests in Romania in order to get the best synergies possible in every regard,” Philippe Questiaux, Lafarge Romcim CEO and Chairman of the Board told Ziarul Financiar.
Lafarge Gypsum International paid about $8.1-$8.5 million for the 90% in Lafarge Arcom Gips SA in two instalments, the first of which was disbursed in 2001, when the French took over 50%. The second step was taken by Lafarge in December 2002, when it bought another 40% from Arcom for $3.6-$3.7 million. The Competition Council endorsed the economic concentration turned into effect by the French on the plasterboard market, where they account for about 25% of the market.
Lafarge Arcom Gips is the only domestic gypsum board maker and is considered to be the second top player on this market after Rigips Romania. The total wallboard market is estimated at approximately $20-$30 million, market sources say, with the other significant players including Knauf Romania SRL (the local branch of a German family business) and the latest entry on the market, Scandinavian producer Norgips.
Plasterboard consumption in Romania remains low compared to other markets across Europe or even in the region, as it amounts to less than 0.5 square metres per capita on the average.
Lafarge Arcom Gips SA made 169bn ROL ($5.1 million) turnover in 2002 compared with 64bn ROL ($2.2 million) in 2001. The productive capacity of the factory located in the outskirts of the Capital is of approximately 3 million square metres a year, with last year’s output estimated at 2.4-2.5 million square metres. Share capital amounted to 179.79bn ROL in late 2002 and the number of employees reached about 73.
The domestic producer intends to double output to 4.5 million square metres this year and post some 500bn ROL ($13.8 million calculated at an average 36,000 ROL/USD exchange rate) turnover. adrian.mirsanu@zf.ro