Lindab Romania wants double digit growth in 2014 despite market slump

The Romanian subsidiary of Swedish building materials producer Lindab plans to boost its turnover by at least 10 percent this year compared to the previous one, said today Andrei Sulyok, the general director of Lindab Romania. The growth will not be generated by the market going up but by the company’s organic growth, the launch of new products and higher sales of ventilation systems, added the general director.

In 2013 the manufacturer posted total sales of approximately EUR 20 million in Romania (EUR 17 million were reported by Lindab Romania and the rest was generated by other group companies which sold directly to the local market). Lindab has seen sales go up over the past years, but the level remains down by half compared to the peak reported in 2008.

Some 30 percent of the company’s 2013 turnover was generated by roofing tile sheet sales. On this segment Lindab has a market share of around 8 percent in Romania. Other products it sells locally include rainwater systems, profile sheeting and ventilation systems. The residential sector generated around 75 percent of Lindab Romania’s turnover last year, whereas the CEE average is 20 percent.

The entire Romanian roofing systems market is estimated at around EUR 120 million, tile sheets representing more than half of it (around 60 percent).

The building materials market has been showing signs of gradual growth starting last year and the trend is expected to continue, especially on the non-residential segment, said company representatives. However, “a new reality has set in” and growth rates similar to pre-crisis levels are no longer possible in the current context, they added.

Lindab Romania has recently celebrated its 20 year anniversary. The company employs 89 people in Romania and has two production facilities with a capacity of 5.5 million meters of product per year. Over the years the company has invested some RON 95.4 million.

The Lindab Group is present in 32 countries, with over 120 branches and 4,300 employees.