Holcim Romania, the domestic subsidiary of Switzerland’s construction materials manufacturer, forecasts its turnover will reach EUR225m in 2007, Ziarul Financiar daily reports on Thursday.
"This year, we’ll witness growth by some 16-18%, above our initial expectations of 10-12%, owing to the rising consumption of cement and to the expansion of the overall construction market. In 2007, we estimate our turnover will increase by 15%,", general manager with Holcim Romania Markus Wirth said.
In the first nine months of this year, the cement market advanced by 20%, double the value projected at the beginning of the year.
Private real estate projects carried out by developers and the resumption of some extensive infrastructure projects drove up the cement market, according to players in this industry. Thus, the amount of cement sold this year could reach approximately 7.3Mt, while the total value will go beyond EUR450m.
For next year, the cement market is expected to go up by 15-20%, with a significant number of new contracts in the public sector due to be registered.
Holcim Romania, the domestic branch of the Swiss group, has a market value of around 410 million euros, according to an assessment by the analysts of Capital Partners investment firm published in ZF’s "Romania’s most valuable 100 companies".
"Were we to consider the methodology used to calculate the value of Holcim Romania (multiplying EBITDA by a coefficient of 7.5 i.e.), the value of the company would stand at 259 million euros, according to our calculations. However, we made no estimation of the value of the company," states Markus Wirth. He considers that when assessing the value of a cement producer, one must also take into account the value of the brand, investments made by the company and its production capacities.
At present, Holcim owns production capacities of 2.5Mt, to be raised by around 500,000t once investments in Campulung are finalised.
The level of investments carried out by the Swiss group since it entered the domestic market will reach EUR404m at the end of this year.