Cement price in Romania climbs 10-12% in seven months due to higher energy and labour costs

The price for cement in Romania went up 10-12 percent in the first seven months of 2008, following high energy and labor costs, announced Markus Wirth, GM of cement maker Holcim Romania.

The cement price hiked 10-15 percent in 2007. Another price climb is expected by the end of the year, on increased electricity consumption and higher energy costs, the company representatives deem.

The cement market could gain 15 percent in the following years, following an advance in the construction of infrastructure and homes.

Holcim Romania plans to assign 135 million euros for investments this year and targets to see 20 percent hike in revenues versus 2007. The company also intends to keep its current market share of 28-30 percent.

The company is present in more than 70 countries and counts about 90,000 employees. In Romania, Holcim's headcount stands at 1,400.

Romania was the No.1 European Union country in terms of construction works growth in May of 31.5 percent, after in April it had the fastest advance in the construction industry, the European statistics office Eurostat showed.

The recent lending boom in the country prompted people to take out more money from banks and build houses. At the same time, developers constructed more offices and shops and increased profit for cement producers, among others.