Carpatcement Holding, the local division of the German group HeidelbergCement, posted a mere 1% increase in turnover in the first half of the year, against the same time in 2007, as a result of the company's limited production capacity. The company currently has the lowest production on the local market - 3.5 million tonnes, unlike its main rivals, Lafarge (France) and Holcim (Switzerland), which saw H1 sales increases of 27.8% and 20%, respectively. According to Carpatcement Holding representatives, the poor increase in turnover was not due to turmoil on the real estate market, which has yet to affect the constructions market.
"The volume of cement sales we recorded in the first six months of 2008 is similar to the level registered in the first half of 2007, because of our limited capacity. At present, due to the growth rate of the constructions sector, demand outdoes supply. Our company produces at full capacity," said Mihai Rohan, general manager of Carpatcement Holding. As early as the beginning of the year, the cement company had forecast that turnover would stagnate in 2008 and that net profit would fall, as a result of limited production capacities and higher costs. The Germans are conducting an extensive investment programme worth 150 million euros, which will last until 2011 and will see the company double its production capacity in Romania, at its plants in Bicaz, Fieni and Deva.
"The first stage of the investment into doubling the production capacity will be the modernisation and start of operations at the second production line in Bicaz. The investment revolves around 60 million euros and will be completed in mid-2009. This will boost production by around 1 million tonnes a year," says Rohan. Currently, Heidelbergcement has a production capacity of around 3.5 million tonnes.
The company will also invest in a building a clinker silo (