Neomar Consulting conducted in February – May 2013 a feasibility study for a client interested in realizing a production plant for ceramic tiles in Romania.

Key facts on ceramic tiles market in Romania:

  • Size: 110-115 million euro annual sales, approx. 26 million square feet (2012)

  • Segmentation:

    • Local production 35%, import 65% (2012)

    • Strong polarization between premium products (mainly imports from Spain, Italy) and low-cost products – approx. 33-35% of imports (especially China, Turkey)

  • Local Production:

    • Only two local plants (Sanex – Cluj Napoca, Lazar Ceramics – Reghin)

    • Sanex Plant controlled by Lasselsberger has an annual production capacity of 6.7 million sqm and sells its products through 100 partners.

  • Consumption per capita in Romania registers one of the lowest levels in the EU – 1.1 sqm per capita, below the majority of countries in Europe.

Conclusions: the Romanian market context provides, in theory, a favorable environment for a new market entrant.

Services offered by Neomar Consulting for this project:

  • Market analysis and customer profiling

  • Elaboration of market forecasts

  • Scenarios and simulations on the evolution of sales of a new player on a 5-10 year frame

  • Integration of various suppliers offers (e.q. equipment, constructions, services, etc) into a 10-year business plan

  • Integration of the business plan into the feasibility study.

  • Discussions and consultations with technical experts to substantiate the total investment costs (equipment, etc.), operating costs (production costs, distribution, marketing) and dimensioning of human and material resources necessary for the implementation and operation of the plant.

  • A complete financial analysis and risk analysis