Intellinews - Romania Construction Materials Report

IntelliNews Romania Construction Materials Report August 2011
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Romania Construction Materials Report

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August 2011
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Contents
Executive Summary
The construction market in Romania is expected to stabilize in 2011 after a 17% decrease during the last couple of years. A certain growth may be seen next year since 2012 is an election year and infrastructure and highway building projects may be expected to receive new funds. Prices for construction materials started to rise markedly in H1, 2011, due to higher raw materials and utilities costs, local companies explained. The construction works index expressed in euros and plotted below support them. This came as no surprise however, since Brent Europe oil reference price soared by 39% y/y in Q1 this year and eased only slightly to 32% y/y in Q2. The construction materials price index increased by 11.8% y/y as of June, pushing up the general construction works index by 8.5% y/y.
Executive Summary Overview Cement Market Brick Market Corporate News
2 3 5 6 8
Such price increases have affected especially the painting, plaster and bricklaying markets. The seasonally and workday-adjusted construction works index edged up by 0.2% q/q in Q2, after it contracted by 2.9% q/q in Q1. On a broader perspective, the adjusted construction index has stabilized after a 7-quarter plunge that ended in Q3 last year at a level that was 31% below the climax in Q4 2008. In Q2 2011, the adjusted construction index was 3.7% above the lowest level, reached in Q3 last year. Prospects for fast recovery after the 30% plunge since the beginning of the crisis remain bleak, but certain stabilization of the construction activity is realistic. Construction companies are eagerly waiting for public auctions and the launch of large projects, promised by the government over the past half a year. Terminating part of the contract for Brasov-Bors motorway with Bechtel opens the door for even more auctions. But the governments management of projects under EU funding remains poor. PM Boc actually had to enforce special measures for keeping functioning the EU-financed projects after EC suspended Jul-Aug the intermediary payments on projects under the 2nd axis of the Regional Operational Programme, namely upgrade works for local and regional transport infrastructure, until all of the 124 projects are being checked.
Written by IntelliNews. The report is based on sources, which we believe to be reliable, but no warranty, either express or implied, is provided in relation to the accuracy or completeness of the information. 1999-2011 EMERGING MARKETS DIRECT MEDIA HOLDINGS LLC., ALL RIGHTS RESERVED COPYING PROHIBITED. COPYRIGHT The views expressed are our best judgment as of the date of issue and are subject to change without notice. Opinions are not necessarily those of Emerging Markets Direct Media Holding LLC or its affiliates. Emerging Markets Direct Media Holdings LLC take no responsibility for decisions made on the basis of these opinions. Any redistribution of this information is strictly prohibited. Copyright 1999-2011 Emerging Markets ro-rba2 from 87.237.108.34 at 2011-09-12 Downloaded by Direct Media Holdings LLC., all rights reserved. 03:42:17 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited.
Overview
Prices for raw materials continued to increase in H1
B re nt , R e ba r E UR price s
have
800 600 400
100 75 50
Starting with the end of 2010, prices for oil-based raw materials saw a sharp increase and this trend was maintained throughout H1 2011. Brent Europe oil reference price soared by 39% y/y in Q1 this year and eased only slightly to 32% y/y in Q2. The prices for raw materials from petrochemistry such as PVC, PP, PE and plasticizers, consequently grew by 12% to 60% during this timeframe, according to a report released by TeraPlast. The prospects for oil price remains risky in H2 on the back of continuous unrest in MENA region even if August Brent quotations showed signs of weakening. The fuel-driven prices of construction materials such as cement thus remain at high levels. Furthermore, the steel prices, yet not surging as steep as the oil prices, have stabilised at rather high levels that are above the pre-crisis levels. Benchmark rebar price reached USD 640 or nearly EUR 450 per ton in July (5.9% up y/y). Since the margins in the construction materials industry were already under pressure on the back of negative volume corrections, the companies had to pass through the higher energy, raw materials and transportation cost to the sale prices of final products. This was not all the time possible and led to further margin squeeze, especially in the cement sector. On the upside, the infrastructure construction area could increase in the second part of the year and in 2012, mostly due to better use of EU funds available to the sector. The residential segment has little chances of seeing more than a moderate growth, while for the non-residential segment a more robust growth is expected until the end of 2012. A possible workout to the negative economic conditions on the local market would be that companies increase their exports and, at the same time, pay more attention to developing their distribution channels such as to capture part of the distribution margin. Such measures would further increase their territorial coverage, would help them to better select their client base, would increase their sales and reduce the period of collecting commercial debts.
200 25 01/04 01/06 01/08 01/10 Rebar [left] Brent Oil [right]
S o urc e: Inde xM undi.c o m
Construction market is expected to stagnate at maximum ro-rba2 this ISIEmergingMarketsPDFEUR 10bn from year
C o nst ruct io n Wo rk s Indice s
After decreasing by 17% in 2010 y/y, down to EUR 9.7bn, construction market is expected to stagnate, at best, 2011-09-12 to EUR 10bn this year, according 87.237.108.34 on at EUR 9.5bn 03:42:17 EDT. DownloadPDF. to representatives of the Romanian Association of Construction Entrepreneurs (ARACO). The sector might, however, expand in 2012 on the back of more public projects, started amid the parliamentary elections, ARACO president Laurentiu Plosceanu forecast. The government has so far failed to match its promises in the field, Plosceanu explained. Data released by the association shows that the average number of employees in the sector decreased by 14% in 2010 y/y, down to 317,200, the labour productivity weakened slightly from EUR 2,657 to EUR 2,550, while the medium monthly average wage increased from RON 1,532 (EUR 362) to RON 1,580 (EUR 375). The construction association urged the government to speed up the payment of EUR 750mn due debt to contractors, piled up from 2008 to 2010 and/or to reschedule the companies debts to the budget. ARACO also suggested that the government drafts a more predictable payment schedule for the public projects and amends the fiscal law to allow companies not to pay taxes before the state clears its debts to them.
Evolution of the Romanian construction sector Production [EUR bn] Employment [avg] Labour productivity [EUR '000/month/employee] Wage [EUR/month, avg] Wage share [wages per production] Source: ARACO, IntelliNews 2008 15.3 415,600 3,072 409 13.3% 2009 11.7 366,600 2,657 362 13.6% 2010 9.7 317,200 2,550 375 14.7%
20 15 10 5 0 2008 2009 2010 Production [EUR bn] Wage Share [% of Prod.]

S o urc e: A R A C O , Inte lliN ews
16% 14%
12%
Construction works index edged up 0.2% q/q in Q2
The seasonally and workday-adjusted construction works index edged up by 0.2% q/q in Q2, after it contracted by 2.9% q/q in Q1, according to calculations based on Romanias statistics offices data. The gross construction works in the quarter fell by 5.4% y/y after a 4.5% y/y reduction in Q1 and an even worse performance in the previous quarters. On a broader perspective, the adjusted construction index has stabilized after a 7-quarter

C o ns t r. Vo l., s ea s., wo rkday- adj. ( 20 0 5=10 0 ) 250 200 150 100 50 01/07 So urc e: IN S
plunge that ended in Q3 last year at a level that was 31% below the climax in Q4 2008. In Q2 2011, the adjusted construction index was 3.7% above the lowest level, reached in Q3 last year. Prospects for fast recovery after the 30% plunge since the beginning of the crisis remain bleak, but certain stabilization of the construction activity is feasible. The construction index was down by 7% y/y in Q4 2010 after the annual contraction had moved to the double digits for the previous six quarters. In seasonal and workday adjusted terms, the construction volume index shrank by another 2.8% q/q in Q1 2011, after surprisingly rising by 6.7% q/q in Q4 2010. However, the temporary recovery in Q4 2010 could not offset the massive plunge of the construction volume index by some 30% in comparison to the peak level in Q2 2008. Calculated on a quarterly basis, the volume index shrank by 29% y/y in Q1 2011 against the peak level, while calculated on a monthly basis the decline stood at 32% in March 2011. Regarding the short term outlook for the sector, the ministries of transport and regional development have recently demonstrated certain efforts to boost public projects, but past mediocre performances require caution. Furthermore, the efficiency of public works might remain rather weak, particularly ahead of local elections, since no overall strategy or prioritization of the public spending has been drafted by the government. Moderate signs of recovery are also visible in the private sector, in line with bankers' efforts to identify sound investment projects to finance.
01/09
01/11
Construction Works (%, y/y) 2008 2009 2010 Q3-10 Q4-10 Total 26.9% -15.1% -13.2% -17.5% -7.0% Total, swda* q/q n.a. n.a. n.a. -7.9% 6.7% New constr. 17.7% -13.8% -18.9% -22.1% -11.0% Capital repairs 48.1% -24.1% -4.1% -12.0% 7.2% Maintenance 51.1% -13.2% -0.4% -4.8% -3.9% ISIEmergingMarketsPDF ro-rba2 from 87.237.108.34 on 2011-09-12 03:42:17 EDT. DownloadPDF. Source: INS, IntelliNews *seasonally, workday-adjusted
Q1-11 -4.5% -2.9% -6.6% 23.2% -11.0%
Q2-11 -5.4% 0.2% -9.2% -2.5% 5.1%
Government terminates motorway contracts on sluggish works...
The public roads company CNADR cancelled the contract for the construction of the 42.5km road segment Moara Vlasiei-Ploiesti, part of the Bucharest-Brasov motorway. Furthermore, the government reached an agreement with US construction company Bechtel upon which the contractor will continue works on only 118km of the 415km Brasov-Bors (Transylvania) project, while the remaining 297km will be auctioned again. Moara Vlasiei-Ploiesti contract was terminated on abandoned works on a specific segment and on excessive supplementary charges of the contractors. The contractors asked for a 47% rise in the contract price after it had already been increased by 25% to EUR 242mn, VAT excluded. The contractors are four local construction companies Spedition UMB and Tehnostrade (both controlled by Dorinel Umbrarescu), as well as PA&CO International (owned by Costel Casuneanu) and Euroconstruct Trading '98 (owned by Dan Besciu). Brasov-Bors contract was partly terminated after the works lagged for years on the back of a combination of financing delays and price hikes asked by Bechtel. The price for the remaining part of the 118km, assigned to Bechtel, will be EUR 6.9mn per km, compared to EUR 14.7mn paid for the part already built. Bechtel commissioned only 52km of the total 415km, seven years after signing the contract, scheduled for completion in 2012. Bechtel will complete the works on the 118km in 2013, minister Boagiu announced. No deadline for the remaining 297km was provided, though. However, Boagiu mentioned that the average price for the remaining sections, subject to further negotiations with the future builder, will be about EUR 7.2mn per km.
... but signs more motorway contracts worth EUR 1.25bn.
Romania's transport minister Anca Boagiu signed most of the contracts for design and construction of motorway sections from Pan-European Corridor IV, auctioned earlier this year. The first batch of contracts is worth EUR 692.7mn and concerns 98km of motorway in Western Romania. The rest of five contracts regard building 85km of motorways for EUR 562mn were also signed. The works are scheduled for completion in 2013, except for Deva-Orastie to be ready in 2016. The sole segment of Corridor IV with no financing available is Sibiu-Ramnicu Valcea - Pitesti. The segment requires some EUR 3bn of financing. But it is the last section before the full completion of Constanta Bors that
would link the eastern port at Black Sea, Constanta, with the countrys western border with Hungary. Commenting on the average price per km of motorway of around EUR 7mn, Boagiu explained that the average price includes the design cost and the cost of special works such as bridges.
Cement Market
Romanias cement production up by 13% y/y in Q1, but growth of cement sales in H1 cannot be considered sustainable In spite of the uncertainties, which makes any forecast difficult, this year it is expected that the local cement market will stagnate at the 2010 level. Cement sales in Romania increased only to a little extent in the first half of the year and this growth cannot be considered sustainable because private investments are still small and with a low level of predictability. The residential and industrial sectors are still growing at a low pace and the highest cement demand continues to come from individual projects, as it has been the case during the last couple of years. Still, there are some positive signals coming from the infrastructure sector, which could have a positive impact on cement demand by year end and the beginning of 2012. Romanias cement production up by 13% y/y in Q1 after 11% y/y plunge in 2010 Romanias cement production increased by 13% y/y to 0.798mn tonnes in Q1 and by 6% y/y in Q2. The domestic consumption surged by 7% y/y to 0.734mn tonnes in Q1, the chairman of the cement producers association CIROM, Mihai Rohan estimates. Nonetheless, the full-year production and consumption will not rise by more than 1-2%, according to CIROMs projections. A 3-5% increase is expected in 2012 when the local and parliamentary elections will speed up public projects. The domestic production decreased by 11% y/y at 6.9mn tonnes last year, while the domestic consumption shrank slightly more by 12% y/y to 6.85mn tonnes. In terms of value, the market reached EUR 500mn-600mn last year and Rohan expects no major changes this year. CIROM's chairman also estimated the entire construction materials ISIEmergingMarketsPDF ro-rba2 from 87.237.108.34 on 2011-09-12 03:42:17 EDT. DownloadPDF. market at EUR 4.4bn last year.
Cement Production Q1-09 Production of clinker cement Quantity (thous tonnes) y/y Production of Portland cement Quantity (thous tonnes) y/y Source: INS, IntelliNews 1,047 Q2-09 1,582 Q3-09 1,957 Q4-09 1,207 Q1-10 597 -43% 704 -30% Q2-10 1,670 6% 2,244 -10% Q3-10 1,701 -13% 2,569 -8% Q4-10 1,187 -2% 1,403 -6% Q1-11 575 -4% 798 13% Q2-11 2,013 21% 2,390 6%
1,005
2,503
2,805
1,492
Lafarges H1 cement sales up by 1.4% y/y in Romania
French building materials producer Lafarge said its H1 like-for-like sales in Romania increased by 1.4% in terms of volume, compared to a robust 15.8% y/y recovery of the markets in central and eastern Europe, where the company operates, Lafarge said in a news release. Adjusted to other effects including prices, product mix and customer mix, the companys activity in Romania increased by only 0.4% y/y compared to a 21.9% y/y
expansion of Lafarge's operations in the region that includes also Poland, Russia and Serbia. The cement producer projected that the Romanian market will slightly contract in terms of volume by 0-3% y/y in 2011 against a 6-9% y/y expansion of the regional market. Lafarge Agregate Betoane increases sales, cuts losses by 13% Lafarge Agregate Betoane, owned by the French group Lafarge, increased its sales by 36% in H1, from RON 40.8mn (EUR 9.6mn) to RON 55.9mn (EUR 13.1mn), while losses were reduced by 13%, down to RON 11.9mn (EUR 2.8mn), according to a financial report sent to the Bucharest Stock Exchange. At the same time, spending increased by 24%, from RON 54.6mn to RON 67.8mn. The company had RON 51.8mn (EUR 12.2mn) turnover in H1, which is 36% increase y/y. The majority stake (84.6%) of Lafarge Agregate Betoane is controlled by French construction materials producer Lafarge, through Lafarge Ciment Romania. The other significant minority shareholder is SIF Muntenia, with a 10.3% stake. Holcims H1 cement sales up by 10.2% y/y in Romania The cement and clinker sales of major Swiss cement producer Holcim increased by 10.2% y/y in volume in Romania for H1, a companys report showed. The average rise in the companys sales on the European market, excluding Germany for which data is not available yet, was 6.5% y/y to 12.8mn tonnes with the best performances in Bulgaria (+28.3% y/y) and Russia (+26% y/y). The cement prices decreased by 3.5% in euros in Romania, compared to a 0.6% y/y overall rise in Europe. One of the three major local cement producers, Holcim Romania holds two cement plants, one grinding station, 19 concrete stations, five aggregates stations and one cement terminal. Last years companys sales dropped by 20% y/y to EUR 200mn. Cement producer HeidelbergCement has increased its sales volume of cement, aggregates and ready-mixed concrete in H1 y/y, in Romania, in spite of significant rise in energy costs and time lag of price increases, according the half year financial report issued by the company.
HeidelbergCement expects weak demand in Romania and Hungary
In its view, in the Eastern-Central Asia (ECA) Group area, construction activity in some countries such as Romania, the Czech Republic and Hungary is still significantly impaired by a hesitant economic recovery. However, the company claims ISIEmergingMarketsPDF ro-rba2 from 87.237.108.34 on 2011-09-12 03:42:17 EDT. DownloadPDF. that the economy and construction activity have regained momentum in the majority of countries, particularly in Russia, Poland, Kazakhstan and Georgia. The report states the sales volume in the cement business line increased substantially in most countries, Romania included. If in the Western and Northern Europe Group area, the producer anticipates further recovery in demand and thus increasing sales volumes for cement and aggregates, it expects varying trends in the ECA Group area. The company continues to anticipate consistently weak development in Romania and Hungary and a rise in demand particularly in Poland and the Czech Republic.
Brick Market
Brick market down by 10% y/y in 2010 The brick market decreased by 10% in terms of volume and by 15% y/y in terms of value in 2010, Mediafax reported, quoting estimates of major producer Ceramica Iasi. The market was hurt by the construction sector decline, and particularly in the new constructions segment, the company explained. The market, which has halved since its peak in 2008, might stagnate this year, the company forecast, still noting certain favourable circumstances, which might result in an increase. In 2009, the brick market slumped by 30% y/y in terms of volume and by 45% y/y in terms of value as it was among the worst hit sectors beside the cement industry, according to the companys estimates. Weak demand and high costs will exert pressure on companies, preventing recovery of the sales. According to Ceramica, market conditions are currently more favourable for residential buildings, due to cheaper labour force. Overall, the bricklaying market, which counts mostly on new buildings, felt extremely powerful the negative effects of the economic crisis. The rest of the construction materials, used more for repairing works of already existing buildings, were less affected.
Production of ceramic bricks [bricks] Q1-09 Q2-09 Production (thou pieces) 14,478 30,734 y/y Domestic delivery (thou pieces) 20,877 28,998 y/y Source: INS, IntelliNews * Classification for 2008 as per Cane Rev.1 (code 264011102) ** Classification for 2009 as per Cane Rev 2 (code 233211102) Q3-09 32,411 34,610 Q4-09 22,269 18,035 Q1-10 18,444 27% 11,686 -44% Q2-10 43,117 40% 46,924 62% Q3-10 52,353 62% 49,377 43% Q4-10 37,287 67% 33,156 84% Q1-11 27,317 48% 20,973 79% Q2-11 46,975 9% 44,490 -5%
Production of autoclaved concrete blocks and bricks [BCA] Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Production (cubic metres) ro-rba2 464,020 630,548 638,053 2011-09-12 03:42:17 EDT. 407,445 320,420 662,756 ISIEmergingMarketsPDF from 87.237.108.34 on y/y -30.9% 5.1% Domestic delivery (cubic metres) 460,889 613,064 667,629 347,088 343,551 695,455 y/y -25.5% 13.4% Source: INS, IntelliNews * Classification for 2008 as per Cane Rev.1 (code 266111301) ** Classification for 2009 as per Cane Rev 2 (code 236111302)
Q3-10 Q4-10 795,807 484,350 DownloadPDF. 24.7% 18.9% 768,459 395,020 15.1% 13.8%
Q1-11 355,714 11.0% 440,327 28.2%
Q2-11 630,523 -4.9% 641,352 -7.8%
Brick markets could shrink in Romania and Bulgaria
Prices for construction materials started to increase at the beginning of the year, due to higher costs for imported raw materials and for utilities, according to brick producer Ceramica Iasi. Fuel costs have increased by 10% and continue on the same trend and gas prices rose by up to 15%, thus negatively influencing transport and production costs. Such price increases have affected especially the painting, plaster and bricklaying markets. As a result, it is expected that in the coming months producers will raise construction materials prices, in their turn, by 5% to 10%. In the same pessimistic trend, Austrian brick producer Wienerberger AG warned that brick markets in Romania and Bulgaria could shrink, said Reuters, quoted by Agerpres. The company is almost entirely dependent on the residential constructions segment and didnt take advantage of the money governments allotted to infrastructure, in the view of stimulating economies after the global financial crisis.
Wienerberger: construction of new houses has further declined in Romania in H1
Austrian bricks and tiles producer Wienerberger recorded positive financial results in Central-East Europe in H1 y/y, in a partly very difficult market environment, the company announced in its half-year results. According to the report, the positive trend continued in Poland, the Czech Republic, Russia, Finland and the Baltic States, but construction activities in other East European countries remained weak. Construction of new houses has further declined in Romania, Hungary, Bulgaria and the smaller Southeast European market. Wienerberger says it sold 18% more clay blocks and 25% more pavers in this region, which reflected higher market shares. Its Central-East Europe region had an increase of 17% y/y in revenues, up to EUR273mn and 45% in operating EBITDA, up to EUR44mn.
The group expects the markets in Romania, Bulgaria, Hungary and the smaller countries in Southeast Europe to remain weak, while the positive trend is likely to continue on most of the West European markets as well as Poland, the Czech Republic and Russia during H2.
Corporate News
Enterprise Investors earmarks EUR 30mn for construction materials plant upgrade Polish investment fund Enterprise Investors plans to invest some EUR 30mn by 2015 in Romanian construction materials producer Macon Deva, in which it already holds the majority stake, Mediafax reported, quoting the companys CEO Marius Marin. At first, a EUR 2mn capital injection took place in May. Macon produces autoclavelled concrete blocks, concrete structural elements, lime and terracotta chimneys. Enterprise Investors took over Macon under a EUR 36mn deal in 2006 and later in 2008 acquired through Macon building materials maker Simcor for EUR 53mn. The Romanian companys official expressed expectations for a 5-6% y/y contraction of the masonry construction materials market this year. The negative adjustment in the companys projection reflects the lack of action on behalf of the government in implementing its projects announced for this year and also the shrinking demand from the private sector that still remained robust in the rural area in 2010. Henkel to invest EUR 10mn in third Romanian construction materials plant German diversified chemicals group Henkel will invest EUR 10mn in its third Romanian construction materials plant, specialized in construction adhesives, Ziarul Financiar announced. The new facility will be developed in Piatra Neamt, while the existing two are located in Pantelimon and Campia Turzii. Henkel Romania's adhesives production capacity will rise by 40% to 700,000 tonnes when the third plant becomes operational in November 2012. The company expects certain recovery in the construction sector next year, after the steep contraction over the past couple of years that reached 17% y/y in 2010. The management explains that the production capacities of the existing plants have already reached their top capacity during 03:42:17 EDT. DownloadPDF. ISIEmergingMarketsPDF ro-rba2 from 87.237.108.34 on 2011-09-12the summer seasons when the demand peaks. AdePlast interested to sell 30% equity to an investor Construction materials producer AdePlast, controlled by local investor Marcel Barbut, is interested to attract EUR 10mn cash injection by selling 30% of its equity to an investor through a share capital increase, the firms owner told Mediafax. According to Barbut, the money is to be used for building an adhesives factory in the Modova area and to acquire a similar producer in Hungary. The company has recently finalized the construction of over EUR 4mn low-density polystyrene boards plant in Ploiesti. Production is expected to begin in September. AdePlast currently operates two plants in Ploiesti and Oradea where it produces cementbased adhesives and finishing products for the constructions industry. It also produces paints in Oradea. The companys revenues increased by 11.5% y/y to RON 126.7mn (EUR 30mn) in 2010, while its net profit rose 2.2-fold to RON 13mn (EUR 3mn). For this year, Barbut plans a minimum 10% turnover increase and up to 25% increase in an optimistic scenario. In August, AdePlast signed a partnership with CEC Bank, called the Protocol for Romania's Energy-Efficiency Insulation, under which CEC Bank is to extend subsidized loans to landlord associations interested in carrying such works. The landlords need to support only one third of the cost of the works from their own funds. Teraplast Bistrita increases turnover by 5.5% in H1, sees sharp decrease in net profit Construction materials producer Teraplast Bistrita increased its net turnover by 5.5% in H1 y/y, up to RON 99mn (EUR 23.3mn), according to a release the company sent to the Bucharest Stock Exchange. On the downside, its net profit saw a sharp decrease of 186%, from RON 5.8mn (EUR 1.4mn) in H1 2010 to a loss of RON 5mn (EUR 1.2mn). In the companys structure, sold production counts for 76.8% of the total turnover, compared to 81.2% in 2010. According to Stefan Bucataru, general manager of Teraplast, the results obtained during the first six months were negatively affected by price increases for raw materials, as well as by certain corrections and provisions made. However, he intends to meet his targets set for this year during H2, through a tighter cost control, export increase and a taking

advantage of local opportunities. Prefabs sales down by 9.15% in H1, net profit lower by 6.5 times
Construction materials producer Prefab reported 9.15% decrease in sales in H1 y/y, from RON 42.6mn (EUR 10mn) to RON 38.7mn (EUR 9.1mn), according to the companys financial report. Its net profit was 6.5 times lower within the same timeframe, from RON 3.16 (EUR 743,000) to RON 487,000 (EUR 115,000). The firms expenses were a little bit lower, from RON 38,8mn (EUR 9.14mn) to RON 38mn, while its turnover amounted to RON 31.8 (EUR 9.4mn) in H1, down by 20.5% compared to H1 2010, when it reached RON 40mn. Prefab is controlled by its board manager Marian Petre Milut, how owns 81.4% of its shares through Romerica International Bucuresti, according to data on the Bucharest Stock Exchange. The other significant shareholder is SIF Muntenia, with a 12.9% stake. Magda Munteanu mmunteanu@securities.com

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IntelliNews Romania Construction Materials Report August 2011

e-mail: intellinews@emergingmarketsdirect.com Editorial: +359 (2) 816 04 04

Romania Construction Materials Report