Sinteza Oradea, a company with Romanian capital that operates in the chemical industry, reports getting back in black for the first half of 2021 (H1), for the first time in the last five years. Thus, the company achieved in the first six months of the year an EBITDA result of approximately 461,000 euros and a net profit of approximately 227,000 euros. By the end of the year, Sinteza Oradea anticipates a turnover of about 8.2 million euro, increasing by about 80% compared to 2020 and announces new long-term development plans.
The losses recorded in previous years were caused on the one hand by the restriction of the company’s activity after 2007, mainly due to environmental regulations, as well as certain technological limitations and market conditions.
The pandemic negatively influenced the company’s activity, through staff fluctuations, organizing efforts to cover productive positions, and positively, through limited access of Asian competition in the European market, time used by the Sinteza Oradea to strengthen customer relations.
Thus, the Sinteza Oradea ended the year 2020 with a turnover of 4.5 million euro and forecasts for 2021 an increase of about 80%, up to 8.2 million euros, given that raw material prices have increased by more more than 100% by the end of last year, and the factory was shut down in 2020, for 2 months.
The company also expects to conclude a net profit this year, compared to last year, when it reported a negative result.
“The results we are announcing today are a team effort. We have built on the directions we have started in recent years and we have known how to manage the growth of market demand, taking the necessary measures to ensure continuity of production and subsequently to increase trade margin by increasing the share of European customers and end-users and also by ensuring the cash needed to support these measures. Next, Sinteza studies the possibility of developing the industrial park on the existing platform, and in the production area analyzes the possibility to access new markets and to develop adjacent products,” said Tudor Stoia, general manager, Sinteza Oradea.
The company has a share of about 10% of the European benzoic acid market. About 70% of its production is sold mainly in Western Europe (Germany, UK, France), and also, through partners – in Turkey, Russia, Ukraine and Israel. The company’s end customers are manufacturers of plasticizers, paints, rubber and other industrial applications.
“I am confident that Sinteza Oradea’s results will follow their upward course, and the company’s management will be successful in turning around Sinteza Oradea. We have the right people in the right places and the global economic context can be favorable for the company’s evolution. We are talking about a company with tradition, one of the largest companies in Bihor County and I am glad that we are witnessing the shaping of a new success story,” added Alexandru Savin, Investment Manager ROCA Investments and Chairman of the Board of Directors, Sinteza Oradea.