Romanian companies are finally landing contracts for the reconstruction of Iraq. The first deal was signed by Tehnoforestexport SA, based in Bucharest - the former foreign trade company before 1989, which used to deal with furniture imports and exports. The company is now in private ownership.
Tehnoforestexport was awarded an $18m contract in Iraq and will manufacture furniture for several schools, sources from the US Embassy in Bucharest told Ziarul Financiar. This is a good deal for Tehnoforestexport, considering the company's sales were worth 1.2 million euros in 2002.
This is one of the biggest contracts ever won by a Romanian company in Iraq.
"The contract stipulates the delivery of furniture for schools. Tehnoforestexport is working with several local subcontractors, among which Sibiu-based Arta Mobilei (Furniture Art)," the quoted sources said.
Ion Popa, advisor to Prime Minister Adrian Nastase has confirmed that, according to the data available in late November 2003, Tehnoforestexport had received an $18m order. Popa added that updated information would be released in the following days by the Ministry of Economy and Trade (MEC), through the Foreign Trade Department.
Also, the Foreign Trade Department yesterday confirmed the $18 million contract awarded to Tehnoforestexport.
Even though the Romanian authorities have confirmed the contract, company officials are not volunteering any details.
"We will not discuss this contract. This is something that only concerns us," Constantin Popa, the company's general manager told Ziarul Financiar.
According to data published on the Finance Ministry website, Tehnoforestexport, which deals in furniture trade, last year posted turnover worth 38 billion ROL (some 1.22 million euros) and employs 122 people. The company logged 1.6 billion ROL in net profit last year. Tehnoforestexport is held by natural persons (whose cumulated stakes amount to 90%), whereas SIF (Financial Investment Company) Muntenia owns 10% in the company.
Tehnoforestexport was established before the Romanian Revolution (1989), when it was called the Bucharest Foreign Trade Enterprise Tehnoforestexport and dealt with imports and exports of furniture.
Businessman Viorel Catarama, president of furniture company Elvila, used to work for Tehnoforestexport before 1989. Catarama was not aware yesterday that Tehnoforestexport had been awarded the contract in Iraq.
Representatives of Arta Mobilei company, one of Tehnoforestexport subcontractors, would not comment on the contract, either.
With five employees, Arta Mobilei last year posted 1bn ROL turnover and net losses worth 3.6bn ROL. The company's sole shareholder is a natural person - Blaga Nicolae.
The $18 million contract is not such a big catch as far as the Romanian furniture companies are concerned. Furniture exports revolved around $733 million last year. Mobexpert, Elvila and Mobex are some of the biggest players on this market.
georgiana.stavarache@zf.ro ; adrian.mirsanu@zf.ro
