Carpartcement Holding, the local subsidiary of German HeidelbergCement group, foresees a 10 percent decline of the cement market this year, to some €700-730 million, due to the construction market plunge, according to the company’s General Manager, Mihai Rohan, for Business Standard. “In the first three months of this year, our sales dropped 30 percent year-on-year. Causes are obviously connected to the fact that infrastructure work has not started and significant jobs, such as residential buildings or malls are blocked,” Rohan said. However, he added that the industry could benefit from a boost from the state, with the €10 billion promised by the government for infrastructure work - a segment that should be the country’s economic development engine during this crisis. On the other hand, proceedings for allocating infrastructure jobs are lengthy, and the funds could take until fall to be sent to the companies. Furthermore, Rohan stressed that the state could become a bankruptcy generator unless it pays arrear debts to companies. “These debts fall on the client supplier chain and are affecting the entire market,” he said. According to Rohan, the construction market is plunging in Bucharest and western Romania, the areas that used to register the most significant growth, while growth, albeit minor, is still registered in the eastern part of the country, where houses continue to be built. “Large companies have no problems against this background, but new bankruptcies are possible for small and medium-sized firms,” he said. Carpartcement Holding has a very sharp cost-cutting program. The company is renegotiating contracts with all suppliers and rental fees. “If we have a 1-2 percent discount, this is good. Everyone understands that we can no longer pay large amounts,” Rohan added.