The Austrian Wienerberger Group, one of the world’s leading brick producers, has announced a massive investment plan for Romania, worth 60 million euros, to take place over the next five years. The plan will target factories producing bricks, roof tiles and pavement components. The Austrians already have two brick factories and want to see their turnover reach 60 million euros on the local market in the medium-term, and are relying on the high potential of new residential constructions to provide this growth.
“Romania has a significant growth potential as far as Wienerberger is concerned. The level of new residential constructions is still low compared with the European average. The closer Romania gets to European Union accession, the narrower this gap will become and Wienerberger will try to sustain this development by supplying top quality construction materials,” explained Wolfgang Reithofer, chief executive of Wienerberger AG. He added the Wienerberger Group had already invested 38 million euros and was planning to invest a further 60 million by 2009 in order to expand its production capacity on the construction supplies market.
“The European Bank for Reconstruction and Development is a valuable partner that will allow us to put this strategy into action,” Reithofer said.
EBRD has already invested 2 million euros in the construction of the largest brick factory in Romania that Wienerberger erected in Gura Ocnitei (80km north of Bucharest), in a project totalling 18 million euros. EBRD currently owns 35% of the share capital of Wienerberger Sisteme de Constructii Romania, the local branch of the Austrian group.
The rest of the necessary funds for the co-funding of the project will come from loans from Austrian banks secured by OeKB (Austria’s export credit agency) up to 4.1 million euros. Wienerberger in its turn contributed part of financing. Noreen Doyle, EBRD’s first vice-president, said the bank had endorsed a multi-project credit facility for up to 50 million euros that should cover Wienerberger AG’s further investments in Romania and in the countries in the region.
EBRD, the largest foreign investor in Romania, relies on the fast growth of the local constructions industry and has made a similar decision to provide financial support for Belgian lime producer Carmeuse’s expansion in Eastern Europe.
The latest statistical data available shows the constructions market increased by 8.6% in the first half of this year, faster than the Gross Domestic Product for the same period (6.6%).
adrian.mirsanu@zf.ro