“Based on our estimates, the market will drop by at least 10 percent this year, due mainly to a stagnation of major residential projects, but also to competition from metal tile companies, who are offering products at lower prices whose quality is not always very high,” according to a declaration for Business Standard by Nicolae Neag, Chief Commercial Officer of Siceram Sighisoara, one of the two local ceramic tile producers in Romania.
Marius Damaschin, Sales Manager of Tondach, the other local producer of ceramic tiles, indicated that the rhythm of market decline will be some 20-25 percent this year. “The halting of real estate investment projects will affect producers of these tiles, and sales to end-users will also drop significantly, due to restricted access to banking loans,” said Damaschin.
Siceram produces bricks and ceramic tiles, and posted turnover at the end of 2008 worth RON 65 million (€17.6 mln) and profit of RON 16 mln. The company finalized a tile factory in Sighisoara last year, following a €16 million investment. The share of bricks in Sicerem’s business is some 70 percent.
