March 27 (SeeNews) - Romanian paving slabs producer Elis Pavaje said on Monday it will invest 10 million euro ($10.8 million) in its third factory in Romania, creating some 40 jobs.
The company has already started the construction of the new plant in Secuienii Noi, in Neamt county in northeastern Romania, and expects to start production in the summer, it said in a press release.
The investment project aims to meet growing demand of precast concrete and optimise logistics costs in Romania's eastern historical region of Moldova, it added.
With this investment, the company's total production capacity will reach 15,000 sq m of paving slabs per day, up from 9,000 sq m per day at present.
"By following the market dynamics, we concluded that the opening of new production facilities is a necessary step in the company's development. We increased sales every year, by optimising production processes and investing in existing production lines, but there is a limit that we can no longer overcome without ensuring additional capacity," the company's general manager Emil Gota said.
Elis expects its turnover to rise by 14% in 2017 to 184 million lei ($43.2 million/40.6 million euro) driven by this new investment, new products development and better promotion.
The company posted a turnover of 161 million lei in 2016, an increase of 11.7% on the year. The rate of growth was achieved by adjusting Elis Pavaje's strategy to opportunities in the domestic market. As construction projects financed from state or EU funds were significantly fewer compared to previous years, the company focused on selling its products to entrepreneurs developing projects financed from private funds. Also in 2016, Elis became a producer of asphalt and general contractor for infrastructure works, providing full services, from earthworks and drainage, to asphalting.
Elis Pavaje began its activity in 1991 as a small family business. Currently, it makes 9,000 sq m of paving slabs per day in its two factories located in Stoenesti, Prahova county, and in Petresti, Alba county, employing some 420 people.
(1 euro= 4.5552 Romanian lei)