Constructions Infrastructure to be favored in 2009

“It all depends on the new government’s ability to initiate new projects and the promptness with which these will be paid, considering that lending conditions will be strict in 2009,” Costin told Business Standard. There will be excess workforce in 2009 on the local market, and bankruptcies in the construction sector, especially in the small and medium-sized enterprise segment, but these will also affect large companies, said Costin. CCCF budgeted €140 million in its 2008 consolidated turnover and targets €250 mln in 2009. It plans to become profitable in 2010. Horia Simu, President of the Cuprom copper producer, recently took over the controlling interest of CCCF and the company’s capital was increased up to €29.61 mln. Wagma Holding brokered the transaction. The new shareholder will allocate €15 mln in 2009 for the acquisition of modern equipment and technology, especially for the firm’s road and bridge division. The new shareholder’s strategy includes restructuring the company, by winning bids for infrastructure projects, and expanding the firm’s activity by building construction material plants using Greenfield investments. CCCF Bucuresti dominated the Romanian construction market until early 2000, due to contracts signed with the Ministry of Transportation. However, the company’s business started to slide as of 2002, and its debt amounted to some €30 mln, forcing the company to file for insolvency. When it was taken over by Simu, the company had €86 mln worth of debt and €40-50 mln worth of receivables.