Butan Gas buys three LPG retailers for €8 mln

The move is part of Butan Gas’ strategy to maintain a frontrunner position on the bottled gas market, which is currently declining.

“The companies are small, but with them Butan Gas is buying markets,” sources said. They added that the distributors will allow Butan Gas to expand its distribution network to areas it did not previously cover and increase its sales. Butan Gas officials were unavailable for comment before closing of the edition.

In 2006, Dolchimex Caracal posted €0.2 mln in profit and €3.98 mln in turnover, Avis’ profits amounted to €54,000 for €3.9 mln in turnover, while Dumagas LPG registered €4.93 mln in business and €62,000 in profits, according to the latest data available.

Butan Gas, owned by one of the Romania’s richest businessmen, Iosif Constantin Dragan, targets some €86 mln worth of business in 2008, 26 percent higher year-on-year. It also plans to increase its market share to 21 percent, from a current 4 percent.

The company’s main competitors are Petrom, Crimbo Gas, Rompetrol Gas, LukOil and MOL. The LPG market is set to reach some €400 mln this year, or 500,000 tons sold.