May 2010

Ikea Changed Entire Board In Romania
The Swedish furniture retailer Ikea has completely revamped the board of its only shop in Romania. Newly appointed chairman is the German Hans Heinrich Schäfer, who has led Ikea Slovenia. The Austrian Rudolf Stroissing (coming from Ikea Bratislava) and the Swede Henrik Olshov from Ikea of Sweden are there to help. Also, the German Georg Platzer and the Romanian Cornel Oprisan have been appointed as managing directors. Oprisan managed the entry of Ikea in Romania. The furniture company posted in 2009 sales of 83.2 million Euro, down by 6 percent compared to last year. But the net profit jumped by 46 percent from 3.9 million Euro to 5.7 million Euro. Ikea has taken over the store in Baneasa, north of Bucharest, earlier this year.

April 2010

Kika Posted 2009 Sales Of 16 Million Euros
The Austrian furniture retailer kika has reported 16 million Euro turnover last year. 2009 was the first full financial year of the Austrians in Romania. The only kika store so far opened in December 2008. Another two stores could be opened next year, one in the port city of Constanta and another in the capital city of Bucharest. Kika invested nearly 30 million Euro in the construction of its store. The company currently has over 100 employees in Romania. Kika-chief Lars Lund sees this year's furniture market in slight rise. According to estimates, the decline in sales last year was 15 per cent, compared to the previous year. In 2008, the Romanian furniture market was valued at about 1.13 billion Euro, a year later it shrank to 960 million Euro.

March 2010

Romanian Furniture Market Could Shrink 2010 By 5 Per Cent
The Romanian furniture market could shrink 2010 by 5 per cent (in relation to the volume sold). According to estimates, the decline in the previous year was 15 per cent. Now, this year among other things, a better cost control should increase profit margins, but also acquisitions of factories with problems are not excluded. Dan Sucu, owner of Mobexpert Group, Romania's largest furniture manufacturer, expects a more difficult year as compared to the already not so easy last year. The Romanian furniture market in 2008 reached about 1.13 billion Euro, a year later, the market shrank to 960 million Euro and is expected to slow in the current year to reach 910 million Euro. The building boom of recent years also had considerably supported the furniture market - especially in the areas of residential and office furniture.

February 2010

So It Works: Company Manages To Access EU-Funds
Whereas small and medium enterprises complain about lack of financing, a company from the county of Covasna managed to tap into EU funding. According to media reports, the wood processor Fortuna Forest has received the promise of more than 400,000 euros from the Sectorial Operational Program for Increasing Economic Competitiveness. Woodworking machinery is to be acquired with that money. Since the company has to bridge the funding until the arrival of EU funds from its own forces, it has accessed a pre-financing of 35 percent. The company employs 50 workers and managed in 2008 a total in sales of 920,000 Euro.

January 2010

Timber industry more firmly in Austrian hands
The Austrian domination in the Romanian wood market is getting stronger, especially because Holzindustrie Schweighofer, Egger and Kronospan have consistently carried out their development plans in 2009. The trio concluded investments of more than 220 million Euro, Holzindustrie Schweighofer alone bought last year two factories. Egger increased its workforce by 270 employees, that will be working for the newly opened plant in Brasov, specialized in producing chipboards. Austrian investors still do not have it easy in the market, especially because it is (still) dominated by the former monopolist: ROMSILVA. With 312 million Euro in sales and nearly 21,000 employees (2008) the state owned company is still the top player, but the Austrian woodworkers are getting stronger. Kronospan employs approximately 500 employees and managed 2008 revenues of just under 200 million Euro, Schweighofer managed with almost 900 employees, approximately 150 million Euro turnover; Egger, finally, with nearly 400 employees, got nearly 70 million Euro.