"In the acute stage of economic crisis and the orientation of the local market by low prices and

low quality standards, the benefits of local production systems Rehau PVC and PE pipes in ibiu pro!ed insufficient to continue the acti!ity Cisnadie factory" #he decision to cease the acti!ity , beginning in late $ay %&'&, was taken in order to optimi(e the distribution of international and cost effecti!eness" employees affected by this measure will benefit the company)s support for seeking another *ob, "said Emil Pop +irector ,eneral of Rehau Polymer" #he company)s turno!er dropped by -&. to about /0 million, but company representati!es say they e1perienced massi!e declines in comparison with the different branches of acti!ity and reduction of sales was lower than estimated" "2mid an economic crisis and lack of liquidity, many of the pro*ects planned in %&&3 had the desired continuity" 4e hope that in %&'& the go!ernment)s strategy to focus and support infrastructure pro*ects, particularly highway construction pro*ects and those of sewerage and water supply" " Rehau had in %&&5 a market share of about '&. PE pipe market and 6. respecti!ely on PVC pipes, both markets with a rate of about '&& million euros in %&&3, down %&." egment increases regenerati!e energies Rehau last year to shift the regenerati!e energies by selling heat pumps, geothermal systems and systems based on solar and says it is already one of the leading suppliers in this segment" ion company budgeted for %&'& a turno!er increase by 07'&. to about %&& million lei 8/5 million9, and if the go!ernment will change to rein!igorate the construction sector, the company let loose a steady increase long term" "#he share of special programs at the moment is not !ery important, relati!e to total sales" :ong7term de!elopment strategies, in!ol!ing, howe!er, their growth and positioning the company as a supplier of solutions based on regenerati!e energies" #his market segment is not currently well de!eloped in Romania, "said Pop" ;e belie!es that the de!elopment of regenerati!e energy is needed to introduce a coherent strategy in a balanced way of obtaining all forms of alternati!e energy use and increase its share" "It would be adopted as soon as the law on energy certification of dwellings and continued heating of the housing rehabilitation program" #hese pro*ects are a welcome attempt to optimi(e energy

consumption of residential buildings and also an opportunity to re!i!e and encourage the construction market, acting not only on the field, but on the real estate, "said company manager" 77777777777777777777777777777777777777777777777777777777777777777777777777777777777777 <une %, %&'& 2uthor= Vlad 2nastasiu ami Plastic Company, which produces pipes of polyethylene 8PE9, estimates for this year turno!er increased by '% percent to almost '' million, counting mainly on increasing market share and increase local e1ports to >ulgaria ?kraine and $oldo!a" #he company is owned by the Italian group ystem ,roup" ":ast year, the tubing business market has become a *ungle" It is !ery hard to loyal customers in $ay and the beginning of the crisis only work on orders" ;owe!er, the fi!e months we can be on schedule with what we proposed for this year, a growth in turno!er and increase e1ports by '%. to %&. of turno!er, "said Riccardo ,iannini, president ami Plastic" Estimated growth in turno!er this year is based on utility infrastructure pro*ects initiated in pre!ious years and deferred in %&&3, but on en!ironmental pro*ects, financed by European funds" 2bout 6&. of plastic tubing business focuses on public works" In %&&3, the company recorded a turno!er of 3"6 million euros and net profit of nearly '"% million" 2ccording to estimates, the market profile has dropped by '&. to 65 million euros" :ast year)s results were influenced by the reduction by almost -&. of raw material costs, which represent about 5&. of the final product price" "#his year I e1pect a further decline in the market or at best to stabili(e" #here are many utility infrastructure pro*ects started since %&&5, but discontinued due to lack of funding" Resumption of work on these pro*ects is e1pected this year, ",iannini said" In addition to this year, said company representati!e in!estment of

'"5 million euros in e1panding production capacities, and logistical capacities at its plant in ucea!a" #he company also recently acquired a '"' million city land in #itu, +ambo!ita county, to build a second production facility locally" "It)s !ery hard doing long term pro*ections, and therefore I find it hard to say when we could finali(e the in!estment in the second production unit" In any e!ent, at #itu, we will focus on products that we now bring in Italy, "said ,iannini" ami)s main competitors in the local market are Valrom Plast, a subsidiary Romstal and Politub, #eraplast subsidiary" @AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA bulatura= Pipes for the state $ay %B, %&&3 2uthor= Vlad 2nastasiu Pipes= Pipes for the state $anufacturers of PVC tubing 8poli!inilclorura9 and PE 8polietelina9 focuses on en!ironmental infrastructure pro*ects for water and sewerage networks to preser!e the business last year, gi!en that more and more real estate pro*ects are being postponed or canceled, and demand is dropping" 2nother business growth strategy aimed at increasing market shares, and in!estment continues e!en with the market decline"

PVC pipe market was estimated last year at a !olume of /&,&&& tons, its !alue is about 0& million euros, while tubing on the market rose to a !alue e1ceeding B& million euros, according to principal players on the market" Cor this year on both markets is estimated to decrease demand, consumption is mainly supported pro*ects for water and sewer infrastructure de!eloped by the authors, who will benefit from European funding" ?ntil %&'-, Romania benefits from the European Commission with a budget of -"% billion euros for the construction, e1pansion or

moderni(ation of e1isting networks of water supply and sewerage" #his year the market is e1pected to decrease in !olume by %&., while decrease in market !alue could be worse, gi!en the reduction in commodity prices" "$arket for PVC pipe has reached the end of %&&5 to about 0& million euros, on a !olume of /&,&&& tonnes" Regarding %&&3, PVC pipe market !alue will range from appro1imately 5&. of the figure recorded in %&&5, according to the price of raw materials has dropped by about %0., and demand in the residential segment is down " said $arius 2lbescu, #eraplast sales manager, the main player on the market" Representati!es Politub polietelina pipe manufacturer, #eraplast group member, said a drop in commodity prices e!en -0. by yearend" "In %&&5, PE pipe market was worth around B0 million euros, at a !olume of 0&,&&& tonnes" Cor %&&3 we estimate that the market !alue will be appro1imately B0. 75&. of the turno!er in %&&5 and a !olume of /&,&&& tons" #he decrease in !alue will be higher, deoarcere last year, the price of raw materials fell to -0., "said 2le1ander #abaran, commercial director Politub" Estimates for last year ha!e been confirmed by Emil Pop, general manager of Rehau Polymer, another player on the market" ;e said more than /& million and that PVC pipe market at B& million euros, PE pipe market" #he significant drop in D'" In the first three months of this year of speciali(ed markets ha!e dropped between -0. for PVC piping and 0&. for PE pipes" #he decline came amid sales ceasing work in the residential sector, but also works of en!ironmental infrastructure, drinking water and sewer carried out by local authorities" "#he PE tubing segment, first quarter %&&3 market !alue was about half that of same period of %&&5" +iminishing market came amid public works funds blocked due to financial crisis" 2t the beginning of all financial resources is often left to local budgets ha!e been redirected toward national budget, "said #abaran" #eraplast 2ccording to representati!es, B&. of total sales of PVC piping in Romania are made on public infrastructure pro*ects for water and sanitation" ?nder these conditions, the release of go!ernment funding pro*ects and accelerate the appro!al of pro*ects with European financing for this type of construction could e!en push for market release this summer"

"?nlocking the PVC pipe market will be possible only when there is public financing for infrastructure pro*ects, as well as when banking institutions will boost lending to pri!ate pro*ects in the residential area" En the release of a market infrastructure could take place in late $ay, early <une, "said 2lbescu" #he same opinion from Rehau Pop, who sees in the near future a greater interest among producers of PVC and PE pipes for pro*ects de!eloped by the state as an alternati!e to building pro*ects delayed or canceled due to lack of funding in!estors" "If there is financing for infrastructure pro*ects budgeted by the state, we actually in the pipe market growth," said Pop" ame Politub appreciate a release directory with the resumption of market infrastructure pro*ects aflalte pending, most likely starting this summer" "In the field of PE pipes in the local market since there are many public works, water and gas are on standby, such as PE pipe market re!i!al will only happen when that will unlock funding for these pro*ects" $ost likely, a release is possible starting in <une, "said #abaran" 2ccording to its public works and water gas networks is about 5&. of sales producers PE tubing" In!estments continue" Cor this year the two companies announced in!estments #eraplast group of o!er 5 million, and in spite of market conditions, most in!estments will be aimed at e1panding production capacity" "If Politub in!estments in %&&3 will be around one million euros and will be directed towards the de!elopment of production capacity through the acquisition of new production lines of PE pipes for drainage" #he company will start production on the new line in <une most likely, "said #abaran" #hus the company will enter new markets such as road infrastructure, the residential or the agriculture, such as for e1ample irrigation facilities" Currently Politub pro!ides piping works only on the gas networks, water and the fiber optics" #eraplast continue its in!estment program this year which in!ol!es the relocation and increase production capacity in an industrial park to aratel, Clu* county, the total pro*ect !alue amounting to o!er 66 million" "#his year is underway #eraplast total in!estment of -&"B million lei 8appro1imately B"- million9" $ost of these in!estments will be oriented towards the relocation and de!elopment pro*ects in the Industrial Park #eraplast aratel "added 2lbescu"

?ntil now, in!estments in increasing production capacity of PVC pipe factory #eraplast amounted to o!er /"% million and were directed both towards the factory building, and toward the acquisition of new production lines" #eraplast annual production capacity amounts to %%,&&& tons annually" Polietelina side, Politub has a capacity of '&,&&& tons annually, de!eloped four product lines" 2fter the start of the fifth production line in the summer of this year, the company)s production capacity will increase by appro1imately %,&&& tons annually" Cor this year #eraplast aims to keep the leading position of PVC tubing with a market share of about /&., while the company appreciates Politub increase market share to %&., thus occupying the second position as a producer PE pipe market" Polyethylene tubing market are companies like Valrom present, the market leader with a share of %5., amiplastic, Palplast, Rehau and Pipelife" In this sense the market is e1pected an increase of competition this year, according to the general market decline, a preser!ation or e!en an increase in business being generated only by an increase in market share" "In the first months of PVC pipe segment so as well as on the EP, the competition was higher than the same period in %&&5" In coming months the market will maintain the same trend, *ust in case and will delay infrastructure pro*ects, and demand will remain at current le!els, "said 2lbescu" PE $2RFE# E,$EG#2#IEG = %&&3

PVC $2RFE# E,$EG#2#IEG

Pipelife: Major investments to reach one of the first two places in the pipe market April 22, 2008 Author: Roxana Petrescu Pipelife, a company speciali e! in manufacturin" plastic pipes for construction, lon"# term plans to $ecome one of the top two players in the marketplace with a minimum "rowth rate of %0& annually until 20%'( )his pace of "rowth coul! $e the main asset of the local market in winnin" the race for a new pro!uction facility will $e $uilt in the re"ion, writes the monthly *usiness +onstruct that will occur on April 2, to"ether with -.( /)here is a plan to $uil! a new pro!uction facility in the re"ion an! is likely to $e chosen Romania as a future tar"et for the investment, mainly $ecause the market "rowth rate profile, pace unmatche! $y any market in the re"ion/ says Peter A$raham, +01 of Pipelife Romania, the local su$si!iary of the Pipelife 2roup is a joint venture $etween 3iener$er"er 4Austria5 an! 6olvay 4*el"ium5( Pipelife Romania was hel! until 200' Pannonpipe, a joint venture $etween 7un"ary an! Pipelife Pannonplast( Pipelife Romania representative says this year it expects market "rowth of aroun! %'# 20&, after last year8s recor! year, the forwar! market was 90#9'&( 7e says that the local market is likely that $y 20%' to maintain a "rowth rate of a$out %0& supporte! primarily $y lar"e infrastructure projects, as well as real estate !evelopment( /)his is our a!vanta"e, $ut competition will $e pretty har! consi!erin" the fact that

*ul"aria, for example, has no such unit of pro!uction( )his is their trump car!,/ sai! Representative Pipelife Romania, $ut without "ivin" further !etails the cost or capacity of such investments( A$ram says that in a few months will $e ma!e the announcement an! the actual construction of the pro!uction unit coul! take 2#9 years( )he company alrea!y has a pro!uction facility in the local market, locate! in Miercurea +iuc, which has a theoretical pro!uction capacity of %0,000 tonnes( :ast year, the factory came out 8%00 tonnes of pro!ucts, which $rou"ht $usiness Pipelife Romania, a "rowth rate of '0& over 200;( /3e finishe! last year with a turnover of %, million euros, up '0& compare! to the result re"istere! in 200;, mainly !ue to stron" market !eman!( 3hen this factor is a!!e! an! $etter plannin" pro!uction process an! a more ri"orous a!justment of inventories to meet customer nee!s, /explains A$raham( <ts sales are implemente! mainly $y construction companies who nee! pro!ucts Pipelife( )hese companies are provi!in" more than '0& of $usinesses Pipelife Romania( +ompany representative sai! that this year $usinesses will have a "rowth rate of a$out 20& a"ainst last year to = %> million, an! slowin" a comin" to calm the market which this year will "row $y more than 20 & compare! to last year when it recor!e! a "rowth rate of up to 9'&( Mon#term plans are to inclu!e the company amon" the top two players at the market, which is part of the "roup policy an! su$si!iary in Romania( /3e want to $e in the top two places in every market we serve( )his is the lon"#term "oal, set in the entire "roup, that < think we will accomplish in the next 8#%0 years( 3e not only !evelope! $ut an! our competitors, an! this makes it more !ifficult to achieve that "oal, /sai! Representative Pipelife( )he first step towar!s achievin" that o$jective will $e to expan! the num$er of !eposits hel!, the main purpose $ein" to re!uce transport costs, an extremely important element of which control !epen!s on the company8s overall efficiency( /*y 20%%, we inten! to reach %0 to %2 stores locate! in *ucharest an! in the province, compare! with the num$er of three warehouses throu"h which we operate now( )here will $e no actual investment that our strate"y is to rent this spaces rather than $uil!in" them from scratch, /explains A$raham( )he %2 stores will $e locate! in cities such as <asi, Ara! an! )imisoara, *raila, 2alati, +onstanta, 6i$iu, +raiova, an! *ucharest( )he company is "oin" to employ a$out nine people this year will a!! 80 staff to existin" employees( Almost half of staff workin" on the pro!uction unit in Miercurea#+iuc( )o!ay, Pipelife Romania has a market share of %%& an! a market of %2& that of P?+( P?+ pipes market companies are the lar"est an! ?alplast )eraplast followe! $y Pipelife, Rehau an! 3avin, an! the P0 pipe in!ustry8s lar"est competitors are ?alrom an! )eraplast Pipelife, followe! $y 6ami an! 3avin Plastics( @evelopment of water an! "as networks, as well as the infrastructure of market hi"h P?+ an! P0 pipes to a$out %20 million euros last year( +onsumption of P?+ pipes this year will reach a$out ,0,000 tonnes, while consumption will rise on the '0,000 tonnes, accor!in" to !ata from market players( ?alue, the P?+ pipe market will reach ;0 millions euros, while sales of P0 pipes will fit aroun! the level of 8'#A0 million euros( 3hile consumption of P?+ pipes !epen!s on infrastructure projects an! real estate, !eman! for P0 pipes is influence! $y the up"ra!in" an! expansion of "as an! water networks(

+utch 4a!in built from plastic pipe factory 2pril /, %&&5 2uthor= Catalin :upoaia +utch group 4a!in present on the Romanian market in '336 distribution of PVC pipes and polyethylene 8PE9, began the construction of a factory in Romania, e1pected to start production by the end of this year, the company)s annual report, not specify the location of the factory and no in!estment !alue" 4a!in shows that subsidiary)s financial results related to Romania increased last year, dri!en by the ad!ance of the construction market" 4a!in Romania imports and distributes pipes and fittings made of PE and PVC, used in sewer systems and gas distribution, as well as interior installations of buildings" #he company has a market share of 5. on PVC, 6. on the PE pipe, according to a study of the market" $a*or manufacturers of PVC pipes are #eraplast, Rehau and Valpalst, while the market PE is disputed by Valrom, Politub, Pipelife and Palplast" Plastic pipe market last year reached about '%& million euros, up by '&7'0. compared to %&&6" #he acti!ities in southern and eastern Europe, including Italy, ;ungary and Romania, the +utch group last year posted re!enues of E?R '0%"' million, higher by '0"6. o!er last year" 77777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777 77777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777
March 2>, 2008 Author: +atalin :upoaia Projects in the $arrel A$out ,8& of homes have no access to pu$lic sewers, while 9'& in homes are not connecte! to pu$lic water supply system( Bn!er these con!itions, the consumption of P?+ pipes an! polietelina 4P05 will "row in comin" years recor! @evelopment of water an! "as networks, as well as the infrastructure, the hi"h market of P?+ an! P0 pipes %0%'& annually, reachin" in 200> to a$out %20 million euros( )he "rowth rate coul! jump to intensify in the comin" years once the investment starts 6ectoral 1perational Pro"ramme 461P5 of the 0nvironment, which involves investment of ,(' $illion euros( /1n the one market that meet attractive investment framework, "iven the housin" shorta"e on the !omestic market an! investments to $e un!ertaken in comin" years throu"h operational pro"rams( Cow we fire continuously with a pro"ram of work in three shifts, seven !ays a week to cope with market !eman!, /sai! 0manoil vice presi!ent an! "eneral mana"er of )eraplast *oar!, one of the most important players on the market of P?+ pipin"(

*istrita )eraplast 2roup, a manufacturer of $uil!in" materials an! plastics, in the next five years will invest ;; million euros in relocation an! expansion of pro!uction capacities, as well as re"ional !evelopment in countries like *ul"aria, 6er$ia, Bkraine an! 7un"ary( Most of the investment pro"ram will $e carrie! out this year, when will invest 22(; )eraplast meD :ioane euros to continue the relocation process $e"an in 200;, whose completion is estimate! for late 2008( )he "roup will relocate five of its ei"ht pro!uction facilities meet the in!ustrial park, locate! a$out ten kilometers from *istrita, in the villa"e 6aratel( )he project will $e !evelope! on an area of nearly 20 hectares, where the "roup plans to $uil! another two factories in Covem$er( <n a!!ition, the "roup has in min! re"ional expansion in the perio! 20%020%9, throu"h acEuisitions or !irect investment in 6er$ia, *ul"aria, Bkraine an! 7un"ary( +urrently, the share of exports in consoli!ate! turnover was a$out ;(8& this year an! will clim$ to %0%0('&( )eraplast manufactures complete interior an! exterior !raina"e, water supply an! heatin", interior an! exterior, P?+ profiles, !ou$le "la in" win!ows an! !oors( @ue to increasin" !eman! an! other market players, such as 2ermans from Rehau, !eci!e! to expan! pro!uction capacity in the local market an! will $e"in 200A +isna!ie $uil!in" a new factory in a fiel! of 2A hectares, an investment estimate! at 20 milD lion euros( +urrently, the lar"est share in the turnover of Rehau, a$out >0& is owne! $y P?+ profiles, followin" that in comin" years P?+ Pipe @ivision 6axon profiles !ue to increase share in the expense of investment in infrastructure( %0%2& Annual 2rowth +onsumption of P?+ pipes this year will reach a$out ,0,000 tonnes, while consumption will rise on the '0,000 tonnes, accor!in" to !ata from market players( ?alue, the P?+ pipe market will reach ;0 millions euros, while sales of P0 pipes will fit aroun! the 8'A0 level for meD :ioane euros( /+onsumption of P?+ an! P0 pipes will increase until 20%0 at least %0#%2&, while imports will remain at a$out %0& of the market,/ sai! representatives of Rehau( )he company owns a factory in 6i$iu in Romania, four structure! !eposits in three sales offices in *ucharest an! *acau +lujCapoca, an! esta$lishe! a lo"istics center last year( <f you use P?+ pipe !epen!s on infrastructure projects an! real estate, !eman! for P0 pipes is !irectly influence! $y the up"ra!in" an! expansion of "as an! water networks( /)he market we serve has a "reat potential, $ut sometimes it fluctuates( @epen! very much on the money allocate! for the reha$ilitation an! extension of water an! "as,/ says 6ever+ostin +o$ianu, "eneral mana"er of Palplast, owne! $y Rompetrol( )he company pro!uces P0 pipes for water an! "as networks, P0 fittin"s an! assem$lies for fuel "as !istri$ution an! water networks, irri"ation systems an! polyethylene P0 pipes for transportin" oil( Palplast plans to $uil! two more pro!uction facilities, one in Romania an! one a$roa!, in an investment pro"ram of a$out = ' million 49(' million5 for the next 29 years( )he company currently operates two manufacturin" facilities in 6i$iu an! +alarasi city of Mol!ova(

/)he company coul! achieve in the next 29 years total investment of approximately = ',000,000 for $oth the acEuisition of new eEuipment, an! to !evelop new pro!uction facilities( Cow, we stu!y the possi$ility of openin" two new pro!uction facilities, one in Romania one a$roa!( @epen!in" on the results of feasi$ility stu!ies will $e necessary to esta$lish the exact amount of investments an! perio! of execution, /sai! +o$ianu( Pipe manufacturer of polyethylene 4P05 Palplast is owne! $y Rompetrol( 1ne of the factors that !etermine! shall Palplast representatives to consi!er openin" of two new plants is the hi"h value of transport costs, which exports more expensive lon"#!istance runnin"( Palplast has a total pro!uction capacity of A,000 tonnes of raw material processe!, of which ;,000 tons are in the 6i$iu plant( Polyethylene pipe consumption currently stan!s at aroun! '0,000 tonnes, or 80#A0 million euros, up $y a$out %0%2& over the previous year, accor!in" to !ata provi!e! $y Palplast( Romstal expan! pro!uction capacity )he $i""est player on the market P0 is ?alrom pipes, part of Romstal, which will invest aroun! 90 million factory in )opoloveni intro, Ar"es county( )he pro!uction facility will $e locate! on an area of ;0 hectares, the first phase will $e complete! in early 200A( Romstal "roup investment "oal is to !ou$le the pro!uction capacity of companies ?alrom pro!ucer of P0 pipe, an! ?alplast, manufacturer of P?+ pipes in the next !oitrei years( Romstal preferre! "ra!ual !evelopment of )opoloveni plant, which will $e fully operational in 20%2 to re!uce the waitin" time until the start of pro!uction( ?alrom an! ?alplast, two manufacturers of pipes an! fittin"s Romstal "roup, has three pro!uction facilities in *ucharest an! one in Bkraine, at ?inita( ?alrom investe! 9(' million euros last year meet pro!uction center in Bkraine, at ?inita, the total investment to reach %0 million( Bkraine is in fact an area of transition towar!s market profile of Russian .e!eration, accor!in" to representatives Romstal( Romstal 2roup comprises the same name, with the lar"est share in turnover ?alrom <n!ustry ?alplast <n!ustry *elform Pro! @e im @evelopment, <16 6oftware 6olutions, 6ervice +enter <nstal, Autoklass @istri$ution +enter an! +ity 2ar!en(

HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH Ectober '&, %&&B 2uthor= 2nca Rif, IC #ransil!ania 2 deal packaged in 6& million per year ome manufacturers of fle1ible packaging customers include do(ens of companies in the food industry #he local market of fle1ible packaging, dominated by importers who ad*udicate appro1imately B0. of sales, lea!ing room for growth and profile manufacturers, who ha!e already started in!esting in increasing capacity" #he large number of multinational companies, de!elopment of large

retail chains, *oining the European ?nion and access to foreign markets are some of the factors that count as players in this sector will implusiona sales in coming years" Packaging production in Romania recorded a growth of 3"/. o!er the past fi!e years, and for the ne1t fi!e is estimated that production will almost double, according to the main players" +omestic market of fle1ible packaging is estimated at about '0,&&& tons per year and amount to appro1imately 6& million per year, out of this amount represents only %0. domestic production and the remaining B0. being imported" 2t this time, domestic production of fle1ible packaging is shared by about ten players, they annually in!est in the de!elopment and moderni(ation of production capacities to cope with growing demands" 2 ma*or player in the market is fle1ible packaging company in >ucharest Print Pack, with Crench capital in!estment, which last year achie!ed a turno!er of 0 million, and this year the company management e1pects an increase in the turno!er -&. o!er last year" 2ccording to company officials, the Print Pack client portfolio includes /& companies from the food industry" "E!olution is dri!en by an increase in estimated production capacity, which now are about '%& tonnes per month" Portfolio of clients will not change significantly this year, our strategy now is to de!elop collaborations that we ha!e already amid increased demand, "said +ragos Ciciu, the company)s marketing director" #herefore the company)s de!elopment pro*ects for %&&B are mainly oriented towards the de!elopment of production capacities, the company in this direction by allocating a budget of around %"B million" "Collowing this in!estment will double production capacity and will reach %/& tons per month" #he market is growing packaging and European integration after some competitors ha!e disappeared because they had no working facilities to the required standard, so to cope with demand should grow, "said +ragos Ciciu" ;e said that in the conte1t of doubling the number of employees in production capacity will increase by at least '0 people, Print Pack lucrad now with /& employees" 2ccording to information pro!ided by company management, Print Pack has a market share of appro1imately 0&. of the Rotogra!ure printed fle1ible packaging market" #he company operates on the fle1ible packaging market in '33B,

initially as an importer only" In %&&& it was acquired first roto printing machine, and last year the two" Print Pack is pri!ately owned, the shareholders are of Crench origin" 2nother way that the packaging companies ha!e recently approached to be competiti!e in this market has been the industry)s association with international partners who can support future de!elopment of the company" 2n e1ample here is #iger omes +e* company, which earlier this year sold its fle1ible packaging di!ision of E#F C(ech group speciali(ing in manufacturing packaging and labels" "Initially I looked for a financial in!estor to support further de!elopment of the company, but we finally opted for an in!estor who has the same field," said $ircea Itu, e1ecuti!e director of #iger omes" 4ith the acquisition of #iger omes, C(ech group entered the Romanian market, being interested only in the fle1ible packaging di!ision, another di!ision, speciali(ing in the production of paper with polyethylene ennobled, +e* remained firm in its portfolio" E#F ,roup representati!es did not want to make public the !alue of the transaction, but said the amount paid for the packaging di!ision was in the millions of euros" E#F originally intended to run a greenfield in!estment in Romania, after management has determined that it will acquire an e1isting company" "It was relati!ely easy for us to decide the company of +e* in Romania because there is now few manufacturers of fle1ible packaging technology required to work with us," said Petr IC #ransil!ania Ryska, general manager of E#F ,roup " ;e said that another reason behind the decision to purchase a part of #iger omes was that company shareholders ha!e a no!el addition, an Italian, which ga!e him more credibility" "4e are delighted with the acquisition completed, so we want to keep e!erything as it is, that is to get on with the same management and same employees" peciali(ation people is good, but we intend to transfer know7how, so that some employees of production will go to the C(ech, C(ech and some will come here, "said Petr Ryska" E#F ,roup di!ision acquired last year a turno!er of - million euros, the total !alue of this indicator for #iger omes was '&"% million euros, up %&. o!er %&&0" E#F $anagement ,roup has announced its intention that in fi!e years to triple the turno!er of the +i!ision

recently purchased #iger omes" "Cle1ible packaging di!ision recorded growth in the most important E#F group and we e1pect that the same thing will happen in Romania" In addition, we ha!e an important ad!antage gi!en that after #iger omes we purchase a portfolio of clients combined work that is both smaller companies, as well as international concerns, "said Petr Ryska" 2ccording Ryska, fle1ible packaging di!ision last year made a third of group sales, which in %&&6 totaled 0& million euros" "#his is the best time to enter the market in Romania because the competition is not !ery far" Eur goal is to become the European leader in packaging and is approached strategy based on acquisitions of companies that are already on the market we want to enter, "said Petr Ryska" E#F ,roup ,eneral $anager said that the C(ech group will be obliged to continue in!esting in +e*, because of market" "In %7- years we will ha!e to in!est in new technologies, as the fle1ible packaging market is continuously de!eloping," said Petr Ryska" In his opinion, now is the best time to enter the Romanian market, gi!en that most customers are already present here the group" "Eur business in Romania ha!e so far resulted in e1ports, their total !alue being about - million annually" In the future we want to keep collaborating with clients that I ha!e #iger omes and we intend to further de!elop the customer portfolio "Ryska said" #iger omes company was founded in '33% as a Romanian7Italian *oint !enture, with the main paper with polyethylene production acti!ity, as well as making the fi1ed packages" Cor business de!elopment, +e*ean maker acquired in %&&' a land of -"5 hectares" ,reenfield construction machinery and equipment has meant an in!estment of %"5 million" #iger omes shareholders Cornaroli consists of Valentino, which directly and indirectly holds B%. stake, and 2drian $ircea Itu, %/., the remaining /. being di!ided between two other Italian businessmen" E#F ,roup speciali(es in the production of fle1ible packaging, labels, graphics, stickers, and small packaging for the pharmaceutical industry in particular" E#F ,roup)s ma*ority shareholder is the C(ech , P group, whose acti!ities in!ol!e financial ser!ices, real estate in!estment, and industrial in!estment" E#F ,roup owns three factories in the C(ech Republic, one in

Romania, and o!er se!eral months to conclude a *oint !enture in Russia" #he group last year had a turno!er of 0& million, and from '330 until now E#F has in!ested o!er -& million euros in the C(ech Republic" 2t this moment the most important in!estors in Romania in the field of fle1ible packaging companies are ,reek, Italian and #urkish, the main companies that own generating capacity in the local market as $al!ina >ucharest, Ploiesti Plast 2rtema, run 2 2 >ucharest and Constanta" Competition in the market for fle1ible packaging $arket !alue is closer to 6& million euros per yearJ %0. of the market is represented by domestic production, the remaining B0. being brought from import #he %0. is di!ided between '& playersJ 2t this moment the most important in!estors in Romania in the field of fle1ible packaging companies are ,reek, Italian and #urkishJ #he main companies that own generating capacity in the local market are $al!ina >ucharest, Ploiesti Plast 2rtema, 2 2 >ucharest and Constanta runJ 2ssociation with international partners to support the de!elopment begins to be agreed and local producers" Credit for e!erything from credit (ero fees ?niCredit #iriac >ank 77777777777777777777777777777777777777777777777777777777777777777777777777777 packaging manufacturer $aillis ierderile $< 8<$$9 last year rose 6B"5. yoy, from B"/5 million to '%"00 million 8- million9, according to preliminary financial report firm" #urno!er of the company dropped 00"/. from 66"%% million to %3"0 million" #he company manufactures wood pallets and secondary packaging especially for food industry, packaging machines and de!ices and has a distribution network in key industrial areas" Company shares are listed on the >ucharest tock E1change, and the last transaction took on 3 Ectober %&&3, at a price of %"/ lei per title, up by '/"%3." In this quotation, $< $aillis has a market capitali(ation of %0 million" #he company is controlled by $< $aillis ,reece, which holds 5'"66. stake$anufacturer and distributor of packaging $< $aillis Romania 8<$$9, in Ilfo!, part of ,reece with the same name, will stop production and lay off by collecti!e redundancies, the employees who perform this acti!ity, as it will affect

about half of the '-& employees of the company" #he decision was taken at a shareholders meeting that was held #hursday" #he company remains the only such distribution acti!ity" "#he cessation of production and pro!ision of alternati!e sources of supply of goods, the company de!elops a better cost basis, which will increase the competiti!eness of the company sales and profit margin," it said in a report sent Criday tock Company >ucharest tock E1change 8> E9"" 2lso, shareholders appro!ed the cancellation of the Register of Commerce working points in Iasi, Clu*7 Gapoca, #imisoara and >ucharest7#argo!iste on the road, used for the storage en!ironment" torage acti!ities will be done at the company headquarters in >uftea" "#his measure will lead to a significant reduction in costs and product deli!ery company will ha!e a minor impact or will ha!e no impact on the !olume of operations," it says in the report" Packaging manufacturer has stopped production acti!ity, between 2pril '0 to $ay '0, due to lower demand, the decision affecting 65 employees whose work contracts ha!e been suspended" $< $aillis Romania last year had an a!erage number of '-& employees" In the first quarter of this year, $< $aillis losses rose more than se!en7fold to '"- million lei 8-'&,&&& euros9 o!er the same period in %&&5" Re!enue fell in the first three months with -'., from 'B million to ''"B million lei 8%"5 million9" 2bout 'B. of turno!er last year came from selling their products on E? markets, domestic sales representing o!er 5&. of the total" #he company has budgeted for this year re!enues up 5. from 6B"5 million to B-"% million and a gross gain of '"/6 million, after losses recorded in <uly %&&5 , // mil" #he company has e1perienced a significant drop in demand in the fourth quarter of %&&5"