Invest in a long-established manufacturer of fired clay products with its own licensed clay reservesThe Business
The Company produces and sells construction materials: brick, tile, crests, ceramic blocks and terracotta stove tiles. It was founded as a brick production plant in the late 19th century based upon locally available clay pits. The Company was privatized between 1991 and 1996. Each production line has its own clay pit located nearby, though under the ownership of the Romanian government and administered by the National Mineral Resources Agency. Development licenses for the clay resources are valid through 2021 with five-year extensions available.
Market
The Company began an investment program of about EUR 23m in early 2008 to increase the production capacity by developing a new production line of ceramic block, which would operate at high European standards. Agreements were made with Italian equipment suppliers and construction began on a new production building. Due to financing difficulties in 2008, work on the expansion has been suspended pending new financing sources.
The Company is seeking equity financing, however mezzanine financing could also be an option.
Sector: Construction MaterialsSegment: Brick and TileRegion: RomaniaFinancing Size: $20m to $50mContact: Dan Trepcea
Company: Schnecker van Wyk & PearsonTelephone: +40 21 233 4333Email: [email protected]
