Wienerberger group, the largest manufacturer of bricks domestically, plans to build its fourth plant in Romania by the end of the year, after the demand for such construction materials increased significantly.
Wienerberger Sisteme de Caramizi, the domestic arm of Wienerberger group, has so far invested around 75-80m euros on the Romanian market in the wake of the acquisition of CEMA Sibiu and the construction of three plants, in Sibiu, Gura Ocnitei and Triteni, according to the latest available data.
The company is considering building a new plant from scratch rather than an acquisition, because other brick manufacturers are unwilling to sell. The new plant could be built on one of the company's current sites, if land in other areas is not found. These investments are part of a larger programme worth 100m euros, which was announced in 2004, when the Austrian group began its rapid expansion campaign in Romania.
"We're interested both in acquiring rivals and in investing in new plants. We may start building a new plant this year, because right at the moment we entered Romania, Wienerberger's intention was to outpace the market," stated Daniel Catanas, the company's general manager.
The Austrians have recently announced a new medium-term investment plan worth 100m euros, with the funds to be directed to production facilities and potential acquisitions of some domestic players, according to Karin Hofmann, head of PR with the group.
An acquisition has several advantages, but domestic players are enjoying the positive market conditions and are not considering selling their plants, choosing instead to invest in order to boost production in a bid to profit from the rapid increase in consumption.
Finding a large plot of land at an affordable price is the main problem Wienerberger has to cope with. One of the hurdles producers face in their
