Prospective investors filed some 90 projects for developing construction materials factories, totaling EUR 1 billion of investments, under the CinstructPlus grant scheme financed by the Romanian government. Only 7-8 projects will be financed, according to government officials quoted by Ziarul Financiar.

The scheme has a budget of EUR 150 million this year, but it is a four-year scheme with a total budget of EUR 600 million – therefore the estimate regards most likely the projects that would get state grants this year alone.

"The application evaluation process is currently taking place. [...] After the publication of the list of applicant companies, the evaluation of requests for approval for financing will be started," representatives of the Ministry of Economy confirmed.

The grants will probably be disbursed around mid-2025; therefore, the new plants may start production two years from now, according to entrepreneur Cristian Erbasu, who owns a large construction company and estimates that around 60% of the construction materials on the local market are sourced from import. The share is much higher when it comes to the technology used (construction equipment, tools).

"Materials such as prefabricated elements necessary for infrastructure, or basalt wool used for the energy efficiency of buildings, is essential to be produced in Romania. Other classic materials that are needed include various categories of rebar, which are still in limited stocks in Romania, compared to the demand," Erbasu commented.

The grants will cover up to 75% (for projects in urban areas) or 85% (in rural areas) of the value of the investment project, but not more than EUR 50 million per project.

iulian@romania-insider.com

(Photo source: Ronstik/Dreamstime.com)