Businessman Nikos Chlepas, Neorom’s new owner, acquired the furniture producer two months ago, and plans to invest €30 million in production capacities, to increase to four in 2007.
Chlepas, who has been in Romania since 2002, is a well-known investor in basketball, who is involved in real estate businesses. He decided to enter the furniture industry and invested massively in Neoset’s development, whose net sales are expected to reach €11 million in 2007. At present, 40 percent of Neoset products are made in Greece and Italy. The new owner intends to relocate production to Romania. “Prices of raw materials are 20 percent lower in Romania, and the work force is 40 percent less expensive, which leads to final prices lower by 25-30 percent,” Chlepas explains. Neorom’s investments in Romania will reach €50 million by the end of this year. It will invest €25 million in a new store and door factory, both to be opened in Targoviste in fall.
The Romanian furniture market, whose value amounts to €700 million, is dominated by the Mobexpert group, controlled by Dan Sucu, and Elvila, owned by Viorel Catarama.
