Ceramika Nowa Gala acquiring Moldovan firm?

2010-03-08

Ceramika Nowa Gala has completed its analysis of a potential acquisition target from Moldova. If the firm meets its expectations, the deal may take place in Q2 2010, Parkiet reported.
The Moldovan firm is building a plant on the outskirts of Chisinau, which may produce up to 3.7 million m² ceramic wall tiles per annum. If the analysis proves promising and Ceramika opts to take control of the firm then the European Bank of Reconstruction and Development, which will provide financial backing for the project, will buy a minority stake. The factory will cost €3.3m to build and should be ready for start-up by the final quarter of 2010.
Ceramika is keen for the transaction to go ahead even though demand for ceramic tiles has fallen off sharply in both Poland and in Europe as a whole. The plant in Moldova will serve as a platform for expansion into markets in Southern Europe. Among other things, it will enable Ceramika to streamline its transport and production costs since the plant will be located in a special economic zone and will also be exempt from income tax.
The company struggled last year mainly on account of the slump in demand for its materials. However, its senior management expects this year to be better, thanks to, among other things, sales growth in Southern and Western Europe.

Find more news and analyses in internet service Construction Poland Online and pdf newsletter Polish Construction Review.