ZF English

Expansion triples Staer deals

15.12.2005, 20:28 13

Furniture producer Staer International this year forecasts turnover worth 24 million euros, almost triple the figure seen last year.

"The main factor behind this growth has been the development of the company''s own retail network, from 10 showrooms at the beginning of the year, to 30 showrooms at the end of November," stated Stefan Nicolae, general manager of the company.

He added that by late January 2006, their number would increase to 40, with targeted locations including Arad, Botosani, Cluj, Deva, Onesti and Bacau. In the first 11 months of the year, the company reported sales of around 21 million euros.

For this year, Staer International earmarked an investment budget of 4 million euros, destined for the development of its production and transportation capacity and commercial spaces.

For next year, the company plans to make investments worth 5 million euros, with the money coming from the company''s own sources.

Moreover, Staer plans to move towards exports, after it bolsters its position on the domestic market, the general manager of the company added. He believes that in the future, the domestic furniture market will be significantly marked by competition from international players.

"The Romanian market already holds enough firms producing for strong European companies. The upcoming opening of an Ikea showroom is also notable," Nicolae also said.

In addition, the upwards trend being followed by fuel and utility prices will represent genuine tests for furniture producers and traders in Romania, the official considers.

The company was set up in 1992 under the name of Prodex AER, with a single associate and six employees, carrying out activities in the sector of upholstered furniture production. At present, the company has 750 employees, production facilities covering an area of 40,000 square metres and a car fleet standing at 41 vehicles.

The company''s solid results come amid a difficult period for the furniture market in general, as most players operating on foreign markets also reported considerable losses in the first three months of the year. According to data released by the Association of Romanian Furniture Producers, Romanian exports calculated in RON shrank in the first nine months of the year by about 2.9%, from the same period in 2004. ioana.david@zf.ro

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