Romania Construction Materials Report - Q3, 2014

USD $149.00
Romania Construction Materials Report - Q3, 2014

This report covers the market developments in Q2/2014, as well as the data available as of October 2014.

The performance of the construction materials market in Q2/2014 paralleled the poor performance of the construction segments over the quarter, yet it varied across the market segments. The cement market was the most affected by the lack of major infrastructure projects. On the other hand, the increased dynamics in residential and commercial constructions reflected in improved activity on the brick and finishings segments. The output of building materials continued to increase y/y in Q2, accelerating from the 7.8% y/y rise in the previous quarter.

The DIY retail market maintained dynamic in Q2. While in the first quarter the market faced consolidation moves (the sale of BauMax and Praktiker chains, and the exit of OBI), in the second quarter players moved on with expansion. Local retailer Dedeman opened four stores this year. Praktiker and Tekzen also announced openings after several years of expansion freeze.

The prospects of the building materials market remain cautious and rather on the pessimistic side at least until the end of the year, closely linked to the same performance expected for the construction sector. In 2013, the construction sector was negatively affected by scarce financing, adverse taxation regime and slow absorption of EU funds. However, each of these factors are expected to be partly settled in the coming quarters, though a notable recovery should be visible in constructions only beginning with 2015.

Key points:
• Construction materials output accelerates growth in Q2/2014
• Investment fund ADM Capital launches offer to buy minority stake in Ceramica Iasi
• Cemacon to resume ceramic bloc production at upgraded line in Zalau in Q1/2015
• Ruuki to close steel roof tile factory in Bolintin Deal
• Dedeman opens stores in Bucharest, Targu Jiu, aims to expand chain to 50 stores by end-2015
• Hornbach reports increase in customer number, mulls further expansion


Table of Contents

Executive summary 4
Market overview 5
Construction materials output accelerates growth in Q2/2014 5
Producers’ prices decline for third consecutive quarter in Q2/2014 6
Construction works index further declines in Q2, bringing H1 drop at 10.4% y/y 7
Number of residential permits drops 3.5% y/y in Q3/2014 9
Number of finished dwellings continues rising in Q2/2014 10
Public roads company CNADNR spends only €79mn for motorway construction in Jan-Aug 2014 10
Cement, concrete 10
Holcim, Lafarge notify EC on merger, Lafarge to sell Romanian production facilities 11
Holcim targets to returns to profit in 2014, expects moderate increase of turnover 11
Carpatcement’s sales volume slightly higher y/y in Jan-Sep 2014 11
Ceramic bricks, tiles 12
Investment fund ADM Capital launches offer to buy minority stake in Ceramica Iasi 12
Cemacon to resume ceramic bloc production at upgraded line in Zalau in Q1/2015 12
Siceram expects 10-15% y/y increase of turnover in 2014 13
Thermal insulation, finishing materials 13
Paints, varnishes market projected increase y/y in volume, value terms in 2014 13
Adeplast reports double-digit y/y advance of turnover in Jan-Sep 2014 13
Ruuki to close steel roof tile factory in Bolintin Deal 14
Symmetrica to invest €1.5mn in new production line at Sintereag plant 14
Construction material, DIY retailers 15
Hornbach reports increase in customer number, mulls further expansion 15
Dedeman opens stores in Bucharest, Targu Jiu, aims to expand chain to 50 stores by end-2015 15
Praktiker resumes expansion by new opening in Targu Jiu 16
Leroy Merlin opens second store in Romania, in Craiova 16
Tekzen launches store in Bucharest 16

Table 1 Non-metallic mineral products output in 2008-2014 (monthly, y/y) 5
Table 2 Construction materials- Producers' price index in 2008-2014 (monthly, y/y) 6
Table 3 Construction sector performance in 2007-2014 (y/y) 8
Table 4 Construction works index in 2011-2014 - Quarterly performance by destination (y/y) 9
Table 5 Construction works index in 2011-2014- Quarterly performance by structure (y/y) 9
Table 6 Licenses for residential buildings issued quarterly in 2011-2014 (quarterly, number, y/y) 10
Table 7 Motorway projects under construction in Romania in Aug 2014 10
Table 8 Holcim Romania SA- Key financials in 2012-2013 (RON thou) 11
Table 9 Carpatcement Holding SA -Key financials in 2012-2013 (RON thou) 12
Table 10 Ceramica SA - Key financials in 2012-2013 (RON thou) 12
Table 11 Siceram SA-Key financials in 2012-2013 (RON thou) 13
Table 12 Symmetrica SRL- Key financials in 2012-2013 (RON thou) 15
Table 13 Hornbach SRL -Key financials in 2012-2013 (RON thou) 15
Table 14 Dedeman SRL -Key financials in 2012-2013 (RON thou) 16
Table 15 Praktiker Romania SRL -Key financials in 2012-2013 (RON thou) 16
Table 16 Tekzen Rom SRL- Selected financials in 2008-2013 (RON thou) 17

Figure 1 Production (Gross Output) of selected construction materials in 2007-2017f ($ mn) 5
Figure 2 Manufacturing of other non-metallic mineral products - Monthly output indices in 2007-2014 (2010=100, unadjusted series) 6
Figure 3 Construction materials- Producers' price index in 2007-2014 (monthly, 2010=100) 6
Figure 4 Construction works index in 2005-2014 (monthly, y/y) 8
Figure 5 Construction works index in 2005-2014 (monthly, 2010=100) 8
Figure 6 Construction gross output in 2003-2017f (bn 1995 $, y/y) 9
Figure 7 Licenses for residential buildings issued in 2007-2014 (number, monthly) 9

Number of pages: 17
Release Date: Fri, 31 Oct 2014