Piatra Neamt-based Kober company, a varnish and paint producer, among the top two players on the market, announced it would invest some 10-12 million euros to develop the biggest plant on the Romanian market.
"In the wake of the extremely strong growth in demand for coating products (paint, primer, varnish) on the market, Kober decided to expand its production capacities. To this end, it acquired Melana 5 unit of Savinesti chemical platform, located near Piatra Neamt, following a tender. In this location, Kober SRL plans to develop the biggest production facility on the Romanian varnish and paint industry, with annual production of more than 120,000 tonnes," Aurel Kober, owner and founder of the varnish and paint business, told ZIARUL FINANCIAR.
The deal through which Kober took over Melana 5 plant is put at approximately 0.58 million euros, with the production area of the facility standing at 16,000 square metres. Such a project would double production capacities in Romania, estimated at around 100,000 tonnes in 2005, according to some industry sources.
The varnish and paint market will this year register sales revolving around 170-180 million euros, with Policolor Bucharest, Kober, D?fa and Fabryo Corporation (the former Guzu Chim) as the main players.
According to the latest data available, domestic demand amounts to 150,000 tonnes per annum.
Romanian paint and varnish companies are posting turnover growth rates of up to 30%-35% per year, amid the rising demand on the construction market.
Consumption is still low compared with other European markets, hence the huge growth potential.
In its turn, this potential is permanently fuelled by the renovation of old buildings and especially by the large residential projects, a very lucrative business in Romania at the moment.
The huge potential of the varnish and paint ma
