Policolor builds a new production facility in Bucharest. Total investments amount to EUR6.4 mln

Policolor will have a new production line in Bucharest, the company announcing that it will build a paint factory on the former industrial platform of Chimester which was acquired earlier this year. 

The project will be developed in the coming two years, so the factory is expected to be operational in 2017.

“The decision to acquire this platform was taken after resuming resin production at the Bulgarian plant. Following the relocation of the platform located on Pallady Boulevard we will establish our production capacities on a well-proportioned land, more appropriate to our needs,” commented Marius Vacaroiu, CEO Policolor-Orgachim Group.

The cost of this new production site comes to EUR6.4 million, including the land acquisition and the amounts estimated for construction and equipment. According to the company, the investment is provided from its own sources, as a result of disposing of 13.9 ha of land (on the historical Th. Pallady platform) for about EUR18 million.

The new facility will incorporate a production line of specific varnishes and paints dedicated to the auto refinish industry with a capacity of 4,000 tons/year and another production line for water-based paints, whose capacity will be 5,000tons/year.

Apart from this project, Policolor-Orgachim Group announces a new expansion of its retail chain with new openings in Sibiu, Arad, and Valcea, which would require about EUR100,000, considering the investment/unit comes to some EUR30,000. Additionally, in 2015 the paint and varnishes producer plans investments of EUR1.3 million for developing new products, adds Vacaroiu.

This year, the group expects increasing revenues of EUR65.5 million, up 24 percent compared to last year. After the first quarter in 2015, the results are in line with the projected figures, both markets for auto refinish paints, resines and chemicals, and decorative paints recording two-digit growth.

Policolor-Orgachim Group operates two large production plants: Policolor Romania and Orgachim Bulgaria, being regional leader in the field of paints and varnishes technology in the SEE region.