“The first investment, of €5 million, targets a factory in northern Bucharest, to be finalized this year. Early next year we will begin work on another factory in the south, in which we will invest €17 million in the coming 2-3 years,” Erico Perini, President and majority shareholder of Romstal, told Business Standard. He added that the company is considering another production unit in Bulgaria, an acquisition in Serbia, several warehouses, and broader production capacities.
Romstal intends to double the number of factories to six in four years. Romstal factories are operated through Valrom Industries, Valplast Industrie, and Beform Pord. Of the plastic pipe production, 70 percent is sold on the domestic market. However, Perini forecasts that this ratio will change in time.
“Large investments in infrastructure, especially in the sewerage system, are necessary. The market will continue to grow in the coming 10-15 years,” Perini said, adding that Romania also has the advantage of a large number of projects.
Romstal’s President believes that the plastic pipe market could still increase by 10 percent eight years from now. A mere 20 percent of rural localities in Romania have a sewerage system, and only 40 percent have running water.
