French firm Saint Gobain took over the leading position on a market worth more than 40 million euros and with high growth potential, after acquiring BPB, owner of Rigips Romania.
Saint Gobain, one of the world''s biggest construction material groups, has over the past two years built a strong position on the Romanian market.
While in 2003, the French approached the Romanian authorities about an investment project in Calarasi worth more than 100 million euros, without enjoying a solid position domestically, they are now carrying out operations on construction materials markets - ducts, abrasives, construction glass, constructions insulating products, pipes and faucets.
In the summer of 2004, Saint Gobain officially announced it had reached an agreement with Romanian authorities over the project in Calarasi, which was expected to entirely reshape the Danube harbour.
The French will build a float glass plant from scratch (for the construction industry).
The French have in recent years made small acquisitions of construction material companies on the domestic market, while their first important purchase was completed this year through the takeover of insulating products manufacturer DBW Ploiesti, from a German group.
The French group late last week announced its shareholders on the stock exchange that it had gained control over British company BPB for 3.89 billion pounds (6.72 billion dollars), at the end of a four-month bidding period. Saint Gobain hopes the contract, the biggest in its history, will supply it with new development opportunities, while the merger between their Isover unit and BPB will generate cost savings of 100 million euros (117 million dollars) starting 2007.
On the Romanian market, the impact is as direct as it can be. The French will now take over the leader on the plasterboard market, Rigips Romania, previously a unit of BPB.
Neither Rigips Romania, not Saint Gobain officials were willing to pass comment by edition close.
Rigips Romania last year announced it would invest 30 million euros to build a plant manufacturing plasterboard panels in Turda from scratch.
The British thus moved from being an importer to being a manufacturing company, after the group had studied the entire region for years in order to choose the location for its investment project.
It chose Romania on the basis of financial and operational figures reported by the domestic unit. The plant will have a production capacity of 13 million square metres.
Rigips Romania, which also has a plaster plant in Turda, last year derived turnover worth around 26 million euros.
catalin.lupoaie@zf.ro
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