Grampet expects the value of its Serbian factory contracts to double

Grampet, which includes the Grup Feroviar Roman (GFR) company, budgeted some €120 mln worth of investments for 2009, to consolidate its position in the region. These investments are destined for, among others, the acquisition of factories in Central and Eastern Europe and of new railway cars. GFR’s business increased by an annual 35 percent in this year’s first nine months, but this growth rate will not be maintained in 2009, due to a drop in the production activity of certain companies, leading to a decline in orders in the freight railway transport sector.

According to certain market analysts, the recent economic evolution will also affect the freight railway sector. If in 2007 analysts talked about a market worth €1 billion in 2010, today’s forecasts are gloomy, due to the downfall of companies which had a significant role in boosting revenues of railway companies. Most affected sectors are iron metallurgy, the chemical and wood industries, and car makers.