Oradea-based Multistar Prod company, the manufacturer of Adeplast construction materials, is set to begin investments exceeding 12m euros, with plans to start building a production facility in Ploiesti later this year.
The investments are part of the company's general expansion plan for the next 3-4 years. Multistar Prod also intends to build a third medium-capacity plant in Moldova to be able to export to the Republic of Moldova, while the plant in Oradea will export products to Austria and Hungary.
"The first plant, which will become operational in 2008, will cost between 8 and 12m euros. We are waiting for offers from three major machinery producers to begin the investments. The plant will be located in Ploiesti, and we have already acquired a 10.6 hectare plot of land of which we plan to keep only 5-6 hectares," stated Marcel Barbut, the general manager of Multistar Prod.
The company predicts it will sell 215,000 tonnes of construction materials this year, 50% more than last year, due to its rising production capacities.
Marcel Barbut, who previously owned a 60% stake in the company, last month became the sole shareholder, after taking over the remaining 40% stock from a group of Austrian investors. The businessman plans to sell around 49% of the stock to an investment fund. In case the talks fall through, the company could be floated on the stock exchange.
This year, Multistar Prod expects to see its turnover increase by around 40% reaching approximately 41 million euros.
"The increase in turnover will be registered amid an overall expanding constructions sector, which has begun to see customers distancing themselves from smaller producers that are unable to cope with market prices or acquire the necessary documents to secure a CE certificate. Moreover, builders are beginning to give up on ancient working systems (...)",
