Xella to produce AAC in Romania

The factory will produce Ytong aircrete blocks which will be distributed on the local market, and the investment will exceed €22 million.

"The unit will have an annual 300,000 cubic meter production capacity and will become operational in about 14 months from the time the construction work began," Eugen Pitic, Marketing Manager of Xella Romania, told Business Standard.

Company officials said that Xella Romania's net sales could increase by some 70 percent once the unit is finished. "This year we will register net sales of some €7 million, compared to €5.5 mln in 2006," Pitic said. He added that the company’s strategy targets a gradual cut in imports in favor of the local production. Xella intends to open a second unit in Romania whose location has not yet been determined.

The company operates in over 30 countries and posted €1.2 billion in net sales in 2006, a similar level to that registered in 2005. Its main competitors on the Romanian market are Simcor Oradea, Elpreco Craiova, Celco Constanta, Macon Deva, and Prefabricate Vest Bucuresti.