Enrico Perini, the owner of the Romstal group, whose businessstood at 350 million euros this year, down 35% compared with 2008,offers one of the most pessimistic forecasts as to the rebound ofthe construction and installation market. The businessmananticipates the situation will improve on this market as late as2013, given that design services have plunged by more than 80% thisyear.
"In 2010 we do not anticipate any increases, but on thecontrary. The designers who design homes, offices or industrialbuildings are working at 20% of the 2008 capacity. It seems theyhave no new projects for 2010, so that projects will come up on themarket as late as 2011. If they start on the design in 2011, thatalong with the permits can take about one year, one year and ahalf, which means the materials produced or sold by us areinstalled one year from the start of the work, which is 2013 at theearliest," Perini explained.
This year, Perini has shifted focus towards consolidating thedomestic business and towards expansion on foreign markets, byopening franchises, with the investments taking up more than600,000 euros.
"So far 10 franchises have been opened in Romania, 8 in Russiaand one in Ukraine. We will open one more in Bulgaria by yearend."Franchised stores take up 150 square metres on the average, divided70% to 30% between storage and display space, while investmentstands at approximately 200 euros per square metre.
"The markets in this area have a very high development potentialbecause they lack construction supplies. In addition, there are nosuppliers of such projects, with national reach," says Perini,explaining his decision to expand the Romstal business towardsEastern Europe.
Perini also wants to tap into the renewable energy market,having already invested more than 8 million euros in this regard,in buying land and building a small wind farm in Galati county,while another 10 million euros might be invested in a new projectin Constanta county.
"For the near future we are only interested in wind power.Romstal group has completed a small project in Galati county, a300kw wind generator. The project in Constanta, besides the 7-8million euros already spent to buy the land will also require 10million euros to buy the wind turbines, with a 6 to 7 MW capacity,"Perini added.
Still he does not rule out the possibility of selling theproject to invest in wind projects outside Romania, because hebelieves investors are faced with trouble from localauthorities.
"Unfortunately the project in Constanta has been frozen for"unclear" reasons by the County Council for a about a year, whichwill not issue the town planning certificate. We are thinking ofdropping the project if we cannot get what we want, that is thepermits from the local administration, so as to implement theproject in time. We will invest in another country, where investorsare better received," Perini concluded.
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