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ARCON: Declining trends on the coatings and paints markets
English Section Publicat de Adrian Agachi 07 Oct 2013 10:10
The Romanian thermo-insulating polystyrene market situated last year to over 100 million EUR, a corresponding value of quantitative sales of 3.5 million cubic meters, according to the estimates of the specialized manufacturer Arcon, with its headquarters in Sfântu Gheorghe city. For the current year, the company expects a decline of at least 10% of the domain, due to the lack of funds allocated by the authorities for the sequel of the program for thermal rehabilitation of blocks of flats as well as because of a financial deadlock created by the late payment of arrears to contractors. In what concerns the local waterproofing market, this also records a decrease of 15% due to the new investments in industrial projects and the decrease in residential works. With an annual production capacity of over 20 million square meters, Arcon is the main producer of bituminous membranes with elastic-plastomer in Eastern Europe. Generally speaking, in what regards the future development opportunities, the heat and waterproofing materials industry is dependent on the state budgets for investment projects and the ability of the authorities to attract European funds, which represent the essential amounts of money for the continuation of the thermal rehabilitation of buildings. In this context, Arcon reported a turnover of over 138 million RON (about 31 million EUR) in 2012, following a slightly increase trend in comparison with the value registered in 2011. "In the first six months of 2013, a significant decline in sales was recorded, which can be placed inside the falling trend and the decreasing margins of the profile market. However, in spite of all this, we hope for a rebound in the second half of this year, the growth of the quantitative sales being supported as well by the expansion of the external distribution network. Overall, we want that the results reported at the end of the current financial year to be on the same level as in 2012", said Sorin Cristea, CFO of Arcon. On the local market, the company commercializes bituminous membranes under the Arco and Festa brands; Arco, Penguin and Rotherm fireproof expanded polystyrene, and Arco Perfect Decor and Perfect Color washable paints and decorative coatings ranges. For further information, click here!
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