After opening a plant in Cluj County (Central Romania), Austrian company Hirsch Servo wants to open a new production facility in Southern Romania, to meet demand on the local market and have easier access to Bulgaria.

"We have not chosen a specific location so far, but we eyed the southern region of the country, so as to have an easier access to the market of Bulgaria. The final decision will be made next year and is mainly up to the development of the domestic insulation and packaging segments," said Peter Grabuschnig, member of Hirsch Servo AG managing board. According to him, the new factory will produce expanded polystyrene used for thermal insulation, as well as polystyrene for packaging, a branch that is not currently operational in Romania.

The companys first Romanian plant is located in the Rascruci village, Cluj county. It has a capacity of 360,000 cubic metres of expanded polystyrene. The total production of expanded polystyrene has grown rapidly lately, up to 18,000 tonnes in 2005, fuelled by the booming real estate market. As a result, the Austrian company has decided to increase its production.

"This investment is part of our strategy of expansion in Central and Eastern Europe. The high energy prices pushed up demand for polystyrene insulations, and generated rising interest in Western standards related to external insulation for buildings. This is the reason why we chose to invest in Romania," added Peter Grabuschnig.

All the production in Romania will be initially sold on the domestic market. After increasing capacity, the company forecasts that annual sales will reach EUR 9 million.

The Hirsch Servo Group is an international company with core expertise in EPS (expandable polystyrene), a material that can be used in a wide variety of applications. It operates one plant in Austria (headquarters), three plants in Hungary, two plants in Poland  and in Slovakia, one plant in Italy and in Romania as well as sales offices in the USA and Taiwan.

www.hirsch-gruppe.com