Henkel Builds New Plant To Boost Production By 40%

05.31.2011 ZF English

Germany’s Henkel group, which owns two building materials and adhesive plants, will start building its third plant in October, in Roznov, southeast of Piatra-Neamt, with investment planned at EUR10 million.

The group's decision points to a rebound in investment appetite on the construction segment, which narrowed by 17% last year. In mid-2010 Henkel's representatives announced they had the land and permits to build the third plant of Romania, but that they would not start investing until the market recovers.

"Any market growth will allow us to start construction works," Andrei Dumitrescu, marketing and sales manager of Henkel's adhesive unit, said last June.

Yesterday, Dumitrescu announced the group would start investments in the new plant this year.

The new Henkel plant will become operational in November 2012. Now, Henkel is seeking a general entrepreneur to build the plant and a general manager for the new production facility. Once construction works are completed, Henkel wants to recruit around 80 people for the Piatra-Neamt operations in the second half of next year.

Henkel's two Romanian plants have a total production capacity of 500,000 tons per year. Thus, once the new plant becomes operational, Henkel's production capacity will rise by 40%, to 700,000 tons per year.