"AdePlast": At worst, our sales for 2009 will remain the same as last year

Officials of "AdePlast", a producer of construction materials for finishes, estimate that in 2009, their turnover could go up to as much as 30-40%, as they are betting first and foremost on the success of the new adhesive factory in Ploieşti. Marcel Bărbuţ, the owner of "AdePlast", is mostly optimistic that launching new products following the opening of the factory in the county of Prahova at the end of October 2008, is the main reason he is optimistic and confident that 2009 will be a good year for the company.

"At worst, sales of 2009 will be the same as those of 2008, and our best scenario estimates a 30-40% turnover for 2009", Mr. Bărbuţ said. "We have several scenarios for 2009, each with a different business plan; some are optimistic, others are pessimistic, so we are ready to act according to the direction of the market. As to our development plans for 2009, we estimate we estimate we will see growth, due to our new production facilities, by bringing to market products with great added value. Moreover, our strategy for 2009 relies on growth for the silo segment, as we intend to take on the market of Bucharest and its neighboring areas".

In 2008, "AdePlast""s turnover was 34 million Euros, the equivalent of "222000 tons of adhesives which were being produced in Oradea and, by the end of the year, in Ploieşti", according to the company"s owner, who said in 2008, the company"s turnover increased 15% over 2007, in spite of the lack of production facilities to deliver the amounts of products required by the market.

Once the Ploieşti factory opened, around 60% of the adhesives and mortar production moved there, with the remaining 40% still being produced in Oradea. "Compared to the same period of 2008, we find that the output shrunk 10-12%, but we are dealing with a much colder winter, that is causing developer"s activity to shrink, as well as ours. Even having the latest dry mortar technology in this part of Europe, work still has to stop if outside temperature drops below 5 degrees Celsius", Marcel Bărbuţ added.

• Prices will go up 10%

"AdePlast""s pricing policy is affected by the appreciation of the Euro, and also by the increase of cement or additive prices, caused in turn by the evolution of the exchange rate. According to the representative of the company, production costs have increased by around 15%, and the company"s list prices have been increased by 10%, starting with March 1st, 2009. "If you want to maintain the quality of your products, then you can"t keep throwing 10-20% discounts at the market, six months or more a year. This is not a business-like attitude. Whoever does this, can either afford losses because they"ve had huge profits in the past, or can borrow money very cheaply from banks outside Romania", Mr. Bărbuţ said.

Concerning the company"s activity for 2009, "AdePlast" representative said "we may lose money this year". He also said "that our investments won"t stop here; we are currently in the process of acquiring a plot of land in Moldova and we still have to complete our investments in Ploieşti, which so far amount to 16.78 million Euros. According to Mr. Bărbuţ, "AdePlast""s investments in 2008 amounted to 28 million Euros.