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Veselin Sokolov, Country Manager Metinvest Carpathia: Construction sector is one of the industries which respond to changes with some delay

Veselin Sokolov, Country Manager Metinvest Carpathia: Construction sector is one of the industries which respond to changes with some delay
de la 14 Iul. 2014 Exclusiv
Veselin Sokolov, Country Manager Metinvest Carpathia: Construction sector is one of the industries which respond to changes with some delay Tags: veselin sokolovmetinvest carpathiasteel marketromania gdp

The economy of Romania is dynamically developing, regardless of the challenges brought on by the international financial crisis.


Veselin Sokolov, Country Manager Metinvest Carpathia, says, in an interview for Manager.ro, that the Romanian market will consume about 3.7 mln. tons of steel in 2014, up from 3.4 mln. tons of steel in 2013.

1. Why did you decide to enter the Romanian market since the steel and the constructions market are decreasing?

Romania is one of the largest steel markets in Southeastern Europe. The country's economy is dynamically developing, regardless of the challenges brought on by the international financial crisis. In 2013, GDP growth beat all forecasts and totalled 3.5%. According to the current expectations, in the next three years GDP will grow annually by 2.5% on average. The Romanian market consumes about 3.4 mln. tons of steel and, according to our estimates, in 2014 this figure might increase to 3.7 mln. tons. Construction sector is one of the industries which respond to changes with some delay. But we believe that growth will follow.

2. In the last period, more Uckrainian and Russian companies have announced their intention to come to Romania. Can we talk about an Eastern investors invasion?

Metinvest’s products both from the mills in Ukraine and Europe are already well-known in Romania. Our trade entity will be focused on strengthening the cooperation with Metinvest’s steel products customers and providing quick and efficient service to them.

3. You estimated sales of $ 200 million for the first year. Who are your customers? Have already signed some contracts?

We have already a number of clients in Romania. They are involved in the construction, machine building, and pipe production.

4. What is the purpose of Metinvest Carpathia in Romania?

Our operations are based on the principle of client orientation. We strive to provide a prompt response to changes in our partners' needs and create valuable products together with them. We need to cooperate with buyers as closely as possible, to be close to them geographically, to provide them with convenient and prompt logistics, to offer a wide range of steel products, and to provide client services and technical solutions. That is why the opening of the trade representative office of Metinvest in Romania was a logical step for us. It is an investment into cooperation with Romanian buyers. Metinvest Caparthia will act as a single prompt channel for working with Metinvest.

5. How do yo see the evolution of the steel market in Romania in 2015, but in the Central and Eastern Europe?

We see positive changes on the back of economy recovery in Western and Eastern Europe and activation of steel consuming industries. We expect steady steel demand growth. Besides Germany, which is a traditional leader of economy growth, the situation is improving in other countries too, for instance in Spain and Italy. That’s why market recovery will be more balanced. According to the updated forecast of the European Commission, economy growth in EU and euro-zone could reach 1.6% and 1.2%, respectively.

Foto: Veselin Sokolov, Country Manager Metinvest Carpathia.


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