SCA Hygiene Products, the Swedish maker of Zewa toilet paper and Libero diapers, wants to buy production spaces in Romania in which it is planning to invest $10-15 million over the next two-three years.
"We are considering the business opportunities, mainly those in the toilet paper and napkins production.
We are very interested in purchasing a local productive line and estimate that the retooling investment (to bring it in line with our standards) should reach $10-15 million.
This money will be invested gradually, keeping up with the increase in the demand for quality products," Svein Ryan, SCA Hygiene Products general manager for the Balkan region, Greece and Romania, told Ziarul Financiar.
Ryan did not disclose the names of the companies targeted. Instead he said he was not in talks with any factory for the time being.
"If your distribution goes well and you understand the consumers' needs, you can have a very good business in Romania," added Ryan, who had been SCA Hygiene Products representative in Romania for four years, before being appointed manager for the Balkan region.
The price of the products (mainly of the toilet paper) would considerably decrease if they were made in Romania, because the transport weighs heavy on the price, due to the substantial volume shipped.
"We want to meet our clients' needs and offer them high-quality products, for affordable prices, and this can only be if we manufacture them domestically.
The Romanian market is very promising and we're here to stay. The imports will continue only until we are able to cover the market with products made internally," Svein Ryan said.
"We had talks with the State Ownership Fund (SOF) in 1998 and 1999 because we were interested in purchasing a local paper factory. The deal fell through, because by the moment the bids were submitted we hadn't studied the tender documentation and we weren't therefore ready to bid. The deadline was not extended, so we were left out," Ryan specified.
As for the domestic production, SCA Hygiene Products' turnover might double at least, the company officials say. The company reached a sales volume standing at $12 million in Romania last year.
The SCA Hygiene Products' supply on the Romanian market includes Libero (baby diapers), Zewa (toilet paper, paper towels, paper tissues, table cloths and face tissues), Libresse (female protection products) and Tena (incontinence products). These four product categories are sold in more than 40 countries, but the main market is Europe.
The only factory the company has in the region is in Russia, where it makes paper hygiene products.
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