In the first six months, companies with established tradition on the Romanian market, such as Cildro Drobeta Turnu Severin, Montana Campeni, and Juso Design, have halted production, while Stratus Mob Blaj entered insolvency. Last year, Mopaf Vrancea closed its gates to make room for a real estate project. The management, the market, exchange rate fluctuations, and the economic crisis are the main reasons for the bankruptcies of furniture producers.
“The market is the main factor that has eliminated part of the operators in this field. During communism, the industry was organized both vertically and horizontally. There were 53 large complexes, which produced for the local market, but mostly for export. Several enterprises appeared after the revolution, which were practically thrown into the water. Those who could swam, good, those who couldn’t did not,” said Ioan Marginean, Head of Silvarom, a company with 400 employees, which has survived by continuously reinvesting its profit.
In his turn, the founder of the Mobexpert group, Dan Sucu, said that these bankruptcies are also due to an industry that is oversized compared to current demand. “When these were built, most of the factories were thought of as factories for export. With the major changes, the explosive rise in prices of raw materials, and the uncontrollable exchange rate differences, the prices of products became too high and uncompetitive,” Sucu said.
Aurica Sereny, President of the Association of Romanian Furniture producers (APMR), said that this time of crisis has also had a positive effect, in the form of a reassessment of company costs and the orientation of companies towards the market.
