Romanian market sees decline

Romanian market sees decline
03 July 2009

The Romanian cement market is expected to decline in 2009 for the first time in three years, due to the real estate crisis, marked by the standoff of projects and cancellations of new investments. As a result, local producers are anticipating a 30 per cent cut in the volume of sales this year.
Local units of Lafarge and HeidelbergCement have recently estimated that their volumes will shrink between 25% and 35%, while the third largest local producer, Holcim Romania, forecasts consumption lower at 20-30% compared to 2008
’In 2009 we estimate a decrease in volume of the cement market of some 20-30 percent. Our sales went down some 16 percent in the first five months as against the same period in 2008, diminution promoted mainly by the lack of financing on the market, which led to the stagnation of several projects which are underway and the postponement of major investments. The unfavourable weather conditions of Q1 had a negative impact on the results obtained by the company,’ general manager of Holcim Romania, Markus Wirth told daily Business Standard.
Published under Cement News