The Bacau-based Dedeman company, which sells construction materials, has contracted a loan worth 15 million euros from ABN Amro Dutch bank, according to the company's representatives.
"We will use the loan to expand our store network and for the company's current operations. We will see higher turnover this year, given the larger sales area and the rising demand for construction materials, but the growth pace will be slower than last year's," Dragos Paval, Dedeman chairman, told ZF.
In 2005 the company registered turnover growth by around 60%, to 70.5 million euros and net income standing at 7 million euros, according to company representatives.
A sum of 11.5 million euros from the loan will be earmarked for investments over a 5-year period, while 3.5 million euros will be used for the company's current activities.
The investment will be used to expand the Dedeman hypermarket chain and to build the first Renault Truck showroom in eastern Romania.
The Dedeman Bacau business, owned by businessmen Dragos and Adrian Paval, is among the few specialised networks outside the capital city competing with major international players such as Praktiker and Bricostore.
Mainly known as a network of construction supplies stores, the Bacau-based group has gradually expanded its area of activity, investing in a furniture plant and in a car showroom for the Dacia-Renault-Nissan brands.
The company announced it would invest 10 million euros this year to build two commercial centres in Focsani and Targoviste, according to the company's representatives. The commercial centre in Targoviste will be the seventh that Dedeman has opened over the past three years and the first one outside of Moldova. Construction work was started in May and the project will be concluded this November, entailing estimated costs of 5 million euros.
The construction of the 5 million euro centre in Focsani is scheduled to end this October.
Last year company representatives announced they intended to open a commercial centre in Bucharest, but they have since decided to postpone this project until next year.
The Dedeman network includes stores, warehouses and showrooms in Bacau, Iasi, Suceava, Vaslui, Onesti, Comanesti, Roman and Braila cities.
The company is entirely owned by businessmen Dragos and Adrian Paval. The two also own the Dedeman Automobile car dealer, which sells the Renault, Nissan and Dacia brands.
Furthermore, Dedeman also owns a furniture plant. The company was set up in 1992 and has 700 employees.
In Romania Dedeman represents over 85 companies from Italy, Spain, France, Poland, Slovakia, Germany and Romania.
