September 17 (SeeNews) - Romanian brick producer Brikston Construction Solutions said on Monday it aims to grow its turnover by 10% to 20 million euro ($23.3 million) in 2018, as well as to increase its exports.
The optimistic expectations are based on the solid performance Brikston has posted in the last 10 years, the company said in a statement. Since 2008, Brikston has doubled its annual sales volume of bricks and ceramic tiles to 350,000 cubic meters.
This year, the company plans to increase the value of its exports to Moldova and Ukraine to 2 million euro.
"We are in full season at this time. The residential market is growing rapidly across the country, especially in Bucharest, Cluj, Timisoara, Brasov and Iasi, and we estimate an increase in the market between 5 and 10% by the end of the year. Benefiting from geographical positioning, we are easily serving the Republic of Moldova and Ukraine, where we intend to increase exports to 10% of this year's turnover," Brikston Construction Solution CEO Iulian Mangalagiu said.
So far this year, Brikston has focused on improving efficiency and productivity in various industry sectors, investing more than 1 million euro in machinery purchases, product portfolio optimization as well as in research and development.
Through Brikston Management, it is considering creating new solutions that are applicable in the construction of energy-efficient houses, a European trend that is becoming popular in Romania as well.
"We are moving fast towards 2020 when new residential projects will have to comply with European legislation by reducing energy consumption to near zero, and this will have a significant impact in the transformation of the building materials industry," Iulian Mangalagiu added.
Established in 1967 as a state owned company and privatized in 1994, Brikston serves the Romanian construction industry with a wide product portfolio consisting of hollow bricks, full bricks, facade and decorative products in various colors and dimensions. Headquartered in the eastern city of Iasi, Brikston employs 200 and has a large distribution network targeting most of Romania as well as exports to neighbouring Moldova and Ukraine.
In July, Austria's Wienerberger abandoned its plan to acquire Brikston from private equity fund ADM Capital in order to grow its Romanian business organically. ADM Capital has agreed to sell Brikston to Wienerberger in October 2017 for an undisclosed sum.
ADM Capital acquired a 98% stake in Brikston in July 2014, through its CEECAT Recovery Fund.
($=0.8544 euro)