Asas Romania, a Romanian-Turkish joint venture operating in the domain of packaging production has started to make investments worth about 15 million euros in order to triple the production capacity of the plant located in Budesti, Calarasi county.
"The packaging market expansion is in full swing and the market will witness exponential growth over the following years. Multinationals start seeking suppliers of packaging on the domestic market, and stop importing it," stated Constantin Nica, general manager of Asas Romania and a minority stakeholder in the company, with about 12% of its capital. The firm he runs includes among its customers companies such as Kraft Foods Romania, Dr. Oetker, Napolact, Kandia-Excelent, Ulker, Unilever and Vel Pitar. About 15% of Budesti-based plant''s packaging output is exported to Germany.
Nica specified that the company he runs was in talks with the European Bank for Reconstruction and Development (EBRD) for the financing of a part of these investments aimed at capacity expansion.
"The rest of the money will come from reinvested profit, as well as from contributions by our Turkish partners," he said. The majority shareholder in the company is Asas Turkish firm, one of Europe''s major producers of packaging, with turnover worth above 40 million euros per annum. Turnover derived by the Romanian unit has seen solid growth over recent years, from 1.7 million euros in 2002, to 3.8 million euros in 2003 and 6.8 million euros last year.
"For this year, we expect the company''s turnover to reach 7-8 million euros because part of installations have been stopped for expansion works," said Nica, who specified that the company turned its first profits as late as last year.
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