The subsidiary of Italy''s Irsap group, Irrom Industrie, which produces tubular steel radiators, has for this year earmarked approximately 5 million euros to construct a new production facility on a 9,000 square metres area.
"Works for the new production facility will start this year, and in case we do not encounter any problems, we estimate to complete work here in October. This is a necessary expansion because the current production unit will be working at full capacity over the following months," stated Gheorghe Tarko, Irrom Industrie general manager.
So far, investments in the Cluj-based production centre have topped 5 million euros, with works having started in June 2004.
The company''s representatives estimate once these new investments have been finished, sales will double in 2006.
"This year, we plan to set up a nationwide sales network. Currently we only have a presence in Transylvania, Banat and several counties in the southern part of the country," Tarko also stated. According to him, only 10% of production in Cluj is available to the Romanian market at the moment.
"The retail market is quite small now in Romania, because people are not accustomed and cannot afford to invest in expensive products. However, we estimate the market will witness considerable growth and so will our presence on this market," specified Carlo Destro, organisation and human resources manager with the Irsap group.
According to him, the management of the group feels upbeat regarding the evolution of the Romanian market, otherwise it would not be making any investments in this region.
The company''s representatives also stated that once the second production unit is finalised, all the types of radiators that the group has in its portfolio are going to be manufactured in Romania.
"So far, we''ve only produced bathroom radiators, but starting next year we anticipate the plant in Romania will manufacture all the products we manufacture in Italy," Tarko also said.
The company last year finalised an industrial facility for the production of tubular steel radiators. The construction, located in Iclod, Cluj county, is on a 17,000 square metre area, with the plant occupying 10,000 square metres. Production activities started last April, but the company''s management estimates full capacity will be reached as late as in 2007.
Romania is the only Eastern European country in which Irsap has manufacturing operations running. According to representatives of the Italian firm, Romania was chosen because its economy is developing in full swing.
Cluj was selected primarily due to its central location. The Irsap group last year posted turnover worth approximately 160 million euros.
anca.rif@zf.ro
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