PRODUCERS&SUPPLIERS: New leader on the Romanian construction products market

The merger between Lafarge and Holcim cement producers, two of the most important global companies in the field, brought major changes in the ranking of specialized companies both on local and global level. Overall, the merger of the two largest manufacturers, based on the sale of some assets to the Irish company CRH, following a transaction valued at 6.5 billion euro, will create a new leader of the local market of construction materials, with revenues which could exceed 250 million euro annually. The deal with CRH was completed in May 2015, the assets that entered into the portfolio of the Irish group including, in particular, operations in Europe, Canada, Brazil and the Philippines. The companies and participations sold by Lafarge Romania to CRH include cement factories in Medgidia and Hoghiz, the grinding station in Târgu Jiu, 16 gravel quarries and 16 concrete plants formerly owned by Lafarge in Romania. In Romania, Lafarge had over 1,000 employees and an aggregates production capacity of 3.5 million tons per year, respectively cement units of 4.9 million tons/year. The legal entities which have entered into CRH structure are: Lafarge (Cement) România SA (which achieved a turnover of 156 million euro in 2014), Lafarge Comnord SA (10.5 million euro), Lafarge Concrete (16.8 million euro), Lafarge Aggregates Concrete SA (24.6 million euro), Lafarge Aggregates & RMX (14.2 million euro), Sicim SA (1.2 million euro), Eco Gest SA (4 million euro) and Recy - Eco Fuel (0.04 million euro). The cumulated turnover of the local companies included in CRH assets following the merger amounted to around 227.3 million euro in 2014. If added the revenues of the two companies already held by CRH in our country, namely Elpreco - Craiova and Ferrobeton - Prahova, with annual sales of 21.2 million euro and 5.8 million euro in 2014, results that all companies currently in the portfolio CRH Romania registered last year a total turnover of about 254,4 million euro. If the market potential for the development of all these companies will be maintained, CRH will become, this year, the largest producer of construction materials in Romania.