Blidar Looks For Business In South America To Make Up For Declines In Europe And Africa

11.22.2011 By Tiron Mirabela

Businessman Valer Blidar, one of the leading Romanian industrialists, who controls Astra Vagoane Calatori passenger car manufacturer, says he has started to look for business in South America, after the North African and European markets to which the company delivered railroad cars collapsed.

"2011 was for Astra Vagoane Calatori the worst year after the [Romanian] Revolution. We lost a lot because of the high costs, the problems on the markets where we delivered railroad, and the investments we started," said Valer Blidar, owner of Astra Vagoane Calatori passenger car manufacturer.

Last year the passenger car manufacturer posted a turnover of 189 million lei (EUR43.3 million) and a profit of RON55.4 million (EUR12.7 million) with 924 employees.

In 2009 the company reported a profit of RON80 million (EUR18.3 million) and a turnover of RON215 million (EUR49.3 million), according to Finance Ministry data.

Astra Vagoane Calatori is the main supplier of railroad cars for state-held CFR Calatori, with whom it has in the last three years sealed contracts over several years worth over EUR400 million.

Industrialist Blidar says on several foreign markets his business partners were not able to pay the railroad cars, so deliveries were suspended.

The situation was worst on the Italian and on the Czech market, where Blidar had won two auctions last year to deliver 50 railroad cars to a railway operated in the Czech Republic, as well as tens of cars to a railway operator in Italy.

"We are striving to get contracts before the year ends and compensate for the losses incurred by Northern Africa. (...) I went several times to countries in South America to find business," he said. The businessman did not say what countries the railway operators he was negotiating with came from, but that such a delivery contract is hard to get signed and that more concrete steps may be taken after December 16.

The businessman says he is willing to go to any external market where he might find buyers of railroad car components.

"The turnover of Astra Vagoane Calatori has been o a continuing downward path and I think profit can amount to as little as 20% of last year's value this year because of problems on external markets. Nobody predicted what would happen on these markets."

In the first quarter of this year, the revenues of railroad car manufacturer Astra Vagoane Calatori were down 70% against the first quarter of last year because of problems in northern Africa and because of the collapse of markets in Libya, Egypt and Iran. And the declines did not stop after the first quarter, says Blidar.

Investments in railroad car manufacturing

Valer Blidar did not confine himself to the niche of railroad car components and in the last two years made significant investments to start tram manufacturing.

After presenting a tram prototype called Imperio, manufactured in partnership with Germany's Siemens, the businessman now awaits auctions in Romania and abroad for modernizing the tram fleets - Astra Vagoane Calatori invested around EUR7 million in the Arad tram plant, which will manufacture 36-40 trams per year.

Moreover, after sealing a partnership with public transport corporation RATB, Blidar will invest EUR8 million to start manufacturing trams in Bucharest, as well.

Apart from Astra Vagoane Calatori, Blidar also holds Astra Vest, Sirv Titu, marble plant Marmura Bucuresti and Tristar Bucuresti. (EUR1=RON4.3608)

(English version by Daniela Stoican)