Last year, existing cement production units almost reached their maximum capacity. To cope with the demand, producers announced investments worth hundreds of millions of euro to expand production capacities or build new factories. These are going to be the first greenfield projects in this segment in the past 20 years.

Austrian Strabag group, one of the top players on Europe’s construction market, has advanced ongoing talks to buy a plot of land in the town of Anina, in western Caras Severin County, to build a new cement factory, with a €250 million investment.

Another significant player, Swiss Holcim group, operating in Romania since 1997, plans to build its fourth production unit locally in northern Cluj County. The investment is estimated at some €400-500 million. However, a final decision is yet to be made, depending on the evolution of the cement market, Holcim Romania representatives told Business Standard.

Nine cement factories, all built during the communist period, are operating in Romania. These were acquired by subsidiaries of multinational Lafarge, Holcim, and HeidelbergCement producers.

The local cement market has increased an average 15 percent annually since 2004. This year, the three producers announced their production lines cannot cope with demand, and they will increase investments to double production capacities in the next two years.