Plastipak CEO: Romanian market remains attractive even with half the growth level in latest 5 years
‘If Romania returns to only half of the growth pace in the latest five years, the situation will be still good for us,’ Young told Ziarul financ iar daily.
William Young, who set up Plastipak with only five employees 40 years ago in the US, also added his company saw significant drops in sales this year, especially in the US.
‘We watch now the market in the US recovering, but there still remain obstacles for us to deal with in the next interval, he said.
Young attended on Monday the opening ceremony of the construction works at the first Plastipak facility in Romania, to be based in Urlati (southern Prahova County).
The investment of Plastipak in Urlati has been attracted by Procter and Gamble, that has started here, since February, the construction of its biggest factory of shampoos, with total investment worth 100 million dollars.
So, the industrial park in Urlati, which is the expansion of the industrial park in Ploiesti, has been entirely covered by the two US companies.
Plastipak has investment plans of 500 mil euros in this factory, which is to be developed in several stages on an area of 8 ha, according to the local authorities.
The representatives of Plastipak have said that the first stage of the project will be completed next year, but they have not yet confirmed the value of the investments in Urlati. This will be the 4th production unit of Plastipak in Europe.
Plastipak will mainly produce for Procter&Gamble in its factory in Romania.
The investment of the two US Procter&Gamble companies and Plastipak in Urlati come in a difficult global economic context, with the big markets in Europe currently reporting a decline in the sales of consumer goods.
At local level, the players in the market are speaking of slumps in sales on the non-food segment of the consumer goods sector, but there are no concrete data showing how much the decline is.
Many companies have postponed their investment projects in additional production capacities until the economic redress.
At local level, P&G is the biggest player in the industry of non-food consumer goods, with annual sales worth 315 mil euros.
The company is holding a factory in Timisoara now, where it is producing detergents such as Ariel, Tide, Bonux or Ace bleaching.
The Americans have recently increased the nominal capital of Detergenti SA factory based in Timisoara by some 32 mil euros, in order to finance the investment in Urlati.