“This year’s feature will be stagnation in sales. We are estimating a minimum advance of only 5-10 percent. The main reason for this result is the evolution of the real estate market,” the company’s General Manager, Bruno Negoita, told Business Standard.
Furthermore, the financial difficulties of construction material distributors are another reason for lower sales. “The financial crisis does not only mean a decline in consumption. Increasingly more small distributors are going bankrupt due to financing problems and higher costs of investments in distribution networks,” Negoita said.
dufa Deutek, controlled by Advent International private equity fund, posted €29 million in turnover in 2007, while initial estimates for 2008 amounted to €38 million.
Main paint producers locally are Kober, Fabryo Corporation, Atlas Corporation, Policolor, and Sarcom, on a market worth some €200 million and expected to increase 5 percent in 2008.
