BILKA, the leader on the roofing market, has acquired Hidromecanica 2 platform and started an investment plan in amount of EUR 20 million to be implemented between 2017-2020. The budgeted amount will be allocated mostly to the development of the products dedicated to the industrial sector.
Bilka restores Hidromecanica 2 platform
After the acquisition and integration of the Romlag platform (a part of Rulmentul Brasov) in the production flow in 2014, following a EUR 10 million investment, the company undergoes a new development stage focusing on the industrial division.
The first step of the industrial development process was completed at the beginning of September when Bilka concluded the proceedings and signed the documents for the acquisition of the platform Hidromecanica 2 Brașov. The transaction was valued at EUR 5.5 million. The platform newly incorporated in the infrastructure of Bilka is located near the halls already owned by the company and it spreads over 9.5 hectares. By adding the new area to the 4.5 hectares of the current production halls owned by Bilka, the total resulting area is of 14 hectares.
„As a result of the last years‘ investments in the residential division, we reached this year a 100% occupancy rate of the available space. This is in connection with a turnover of RON 400 million estimated for the end of the year. Therefore, it would have been impossible for us to develop our residential division in the existing area; in this context, growing our industrial division would have been out of the question. The acquired platform will allow us to maintain comparable growth rates in the following years, but also to develop our industrial division. Out of the 9.5 ha area, 20% will serve the residential division as a warehousing facility for the raw materials; the remaining space will be allocated to the industrial division for production halls, warehousing, and necessary logistic facilities“, declared Horațiu Țepeș, the owner of Bilka.
The second stage of the project will consist in the refurbishment of the platform and the acquisition of the necessary production equipment. The EUR 20 million investments are supported by the company’s profit and a bank loan.
„Now that we acquired the platform, we will start the renovation works which will last a year. The previous experience with the refurbishment and integration in the production flow of the Romlag platform will help us properly manage this new project. At the same time, we will work on the acquisition of the required production equipment and raw materials and on the expansion of the team in charge of this division. The investment will be implemented in three years and may be completed in 2020, once the new platform is refurbished and fully equipped. The first outcomes of these investments will be noticed by the beginning of 2019 when we estimate that the production of insulated panels will be ready for launch“, stated Horațiu Țepeș.
Future plans: expanding the market of insulated panels and the consumption of pre-painted steel
The market of insulated panels reached about EUR 100 million in 2016, being 8% higher versus 2015. The company’s assumptions for this year point to a 5% growth.
The market of pre-painted steel reached 256,000 tons in 2016, from 213,000 tons in 2015. The company estimates a volume of 270,000 tons in 2017.
At present, the manufacturing of industrial products accounts for 10% of the company’s turnover, while the remaining 90% is represented by residential products.
„Through the investment project that we have initiated, our plan is similar to that implemented on the roofing market, notably to come with a new approach, with new products and services leading to the growth and improvement of the market dedicated to panels and corrugated metal sheets and implicitly to a higher consumption of pre-painted steel. In our industry, one performance indicator is represented by the consumption of pre-painted steel and in this respect, we estimate that the Romanian market may exceed the 400,000 tons threshold in 5-7 years. Our assumptions are based on the growing need for metal roofs in Romania, on the development of the industrial construction sector, but also on the investments that we have initiated this year which will sustain the market evolution. In 2016, the consumption of pre-painted steel by Bilka reached 63,000 tons and this year we estimate consumption of 80,000 tons. In the following 5 years, after the implementation of the investment plan, the launch into the production of insulated panels and corrugated steel sheet profiles, and after the consolidation of these investments, the company’s demand may exceed 100,000 tons of pre-painted steel“, declared Horațiu Țepeș.
BILKA, a leader on the roofing market and the largest consumer of pre-painted steel in Romania, ended the year 2016 with a turnover of RON 270 million. In 10 years of activity, BILKA covered over 150,000 houses. The production lines are fully automated, relying on the latest technologies available worldwide. In 2016, BILKA sold its products all over the country and abroad via more than 500 stable dealers. BILKA products are exported in several countries, among which Bulgaria, Hungary, the Republic of Moldova, Germany, Poland, Slovakia, and Ukraine.