Enterprise Investors To Invest EUR30M In Upgrades At Macon

05.05.2011 By Andrei Circhelan

Polish private equity firm Enterprise Investors, which holds Romanian construction materials maker Macon Deva, will invest EUR30 million by the end of 2015 in upgrades at Macon’s plants.

"Enterprise Investors has an investment program worth EUR30 million targeting upgrades at Macon, which will end in 2015," Macon's chief executive Marius Marin said Thursday during the conference "Mediafax Talks about Constructions".

The company official added that the EUR2 million capital injection set for May is based on the confidence that the construction materials market will recover eventually, even though the masonry materials market is set to shrink by 5%-6% this year.

The masonry materials market decreased in value because there is no sustained investment from the state budget, and private demand is dwindling.

"In the beginning of the year we believed, as we had been promised, that there would be Government-funded projects, but they have yet to show. In addition, private demand is declining, especially in rural areas, which used to compensate the lack of government investment," Marin said.

He added authorities need to develop an action plan to counter, between 2012 and 2014, the effects of energy price deregulation, otherwise local players might relocate their business to other Balkan countries.

Enterprise Investors bought Macon Deva for EUR35 million in 2006, and in 2008 it took over the Simcor Oradea group for EUR53 million, through Macon.