Carpatcement's business increased by 40%

The company posted net sales yesterday, worth €139.2 million in the first half of 2007, 50 percent year-on-year.

The Romanian market generated an increase in Carpatcement's revenues, far above the regional average which the group announced several days ago. Due to increases registered by Carpatcement Holding, the list of top producers remained unchanged at the end H1 2007. The French Lafarge group, leader on the domestic cement market, recently announced that revenues obtained from cement sales rose by 83 percent in H1 2007.

Real estate projects, subject to an upward trend on the construction market, and work on road infrastructure were the main factors contributing to the increase in revenue, according to Mihai Rohan, General Manager of Carpatcement Holding. Rohan estimates net sales will increase by one fifth in 2007.

The company posted €221 million worth of cement sales in 2006, up 40 percent year-on-year, and €240 million in net sales. The Romanian Carpat Beton division registered a 40 percent increase from Q1 2006, to €22.3 million, while the Carpat Agregate division increased by 50 percent, to €10.3 million.

Carpatcement is a member of the German HeidelbergCement group, one of the world's leading cement and building material producers, whose net sales in Romania reached €278 million, including the concrete and aggregates division. The group registered increases by more than 10 percent in Eastern Europe, and intends to invest over €188 million in production in 2007, of which 10 percent is allocated for environmental protection.

HeidelbergCement entered the Romanian market in 1998 and registered worldwide net sales of €9.2 billion in 2006, up 18.3 percent year-on-year. Its main competitors are French Lafarge and Swiss Holcim companies.

 Market
The cement market in Romania registered 7.7 million cubic meters in volume in 2006, and producers estimate its value to be worth €600 million by the end of 2007.