Rombat becomes Peugeot supplier, and gets ready for Ford

Rombat Bistrita, the main domestic player from the auto batteries market is expecting to an increase of 25% for sales and prepares to become supplier for the factory Peugeot from Slovakia.  Ioan Repede, general director and one of the shareholders of Rombat, sustains the economical forecasts of the Government and says that it isn’t difficult to do business with the state.

„Financiarul“: How do you anticipate the evolution of  Rombat businesses in the current year against the previous year? How does the market of domestic production batteries evolve versus the imported one? Ioan Repede: We recorded in the first months a good evolution and for the entire year we have an estimated increase of 25% for sales, associated also with an increase of profit.  Despite the existence of a strong competition with international brands we are maintaining the position of market leader with a share over 50%.
 
How do the profits of the company affect the oscillating evolution for the auto market of the current year? This oscillating evolution didn’t affect at all the company’s profit, because our portfolio of customers is well structured. For example, during this year, 20% of our sales will go towards the customers manufacturers of automobiles OEM, 40% on the Romanian market of spare parts and 40 % on the European market of spare times. This division of our sales on the mentioned segments it helps to absorb some oscillations that can turn up in a segment or another.

Did you receive offers from other big players? What was your answer?
We had and further have contacts with big companies in the domain of battery manufacture. We are opened for a collaboration with this type of companies, but we aren’t urged for accepting any type of partnership. As a result, we are always looking for a better offer.

What investment plans do you have for the current year? Do you intent on opening another capacity of production or to extend on new markets? In what concerns the investment plans for the current year and for the future we’ll focus on three main directions. The first objective is to keep on developing the fabrication of batteries and when I say this I’m thinking about an increase for the capacity of battery fabrication.The second objective is to develop on the segment of purchasing and revaluation of junk batteries. In this sense we have projects that aim the development of the capacity to recover the lead from the junk batteries, from Copsa Mica, in order to increase its capacity, efficiency and especially to corresponde to all ecologic requests. The third development direction is to produce power energy, investing in micro hydro power stations.  

How do the Rombat businesses influence the turn up of a new top auto producer on the Romanian market - Ford - together with its army of suppliers?
The influence can’t be otherwise than good. Taking into account that we are qualified on this market, being already suppliers for Renault and starting with September 2008 supplier also for Peugeot Slovakia, we have all the chances to qualify also for Ford. That’s why, I repeat, the entrance of this type of player on the Romanian market is a good sign.

How did the Rombat business with automobile evolve? Do you intend to extend the brand Rombat also on other markets?
Rombat Automobile is for the moment leader on the market from Bistrita in what concerns the import of automobiles. We don’t have as prioritary objective to develop in this direction, however if there will turn up opportunities we don’t exclude the possibility of development in this direction, too.

How do you see the economical forecasts presented by the Government: too optimistic, too pessimistic, are them realistic?
The forecasts made by the Government, BNR and BCR proved to be realistic. The other banks especially the foreign ones, the foreign rating agencies have made pessimistic forecasts in comparison with the obtained results.

Do these forecasts fold on what you can notice that happens in the business environment? Of course, these forecasts fold on the results Rombat and as I mentioned we have recorded significant increases for sales, turnover, profit, in investments and also in other domains.

How difficult is to do business with the Government? Is the Romanian business environment so strongly attached by the political factor? How difficult or easy is to participate to an auction organized by a local or central authority?
From our point of view it isn’t difficult to do business with the Government, but for the moment we don’t carry on big businesses with this. We participate to auctions, through which companies with public capital purchase batteries, but we haven’t noticed till now if the auctions are political influenced.

If you had the possibility what taxes and central or local taxes you would purely abolish? Why?
I think that the flat tax was a very good measure and the results don’t delay on being observed.