Romania-Glass, Fine Ceramics & Porcelain Industry
FOREWORD
This work shows the evolution of Romanian glass, fine ceramics and
porcelain industry during 2002-2007 with a special chapter of foreign trade
covering the period between 2003 and 2008.
The glass, fine ceramics and porcelain industry is holding an
important position as part of Romanian economy.
Romania is a tough competitive player on international market of
glassware, fine ceramics and porcelain and ranks among the most
important suppliers of articles thereof on the market of the EU.
The present concept of industrial reorganization is based on
economic viability, seeking primarily to secure the effectiveness of those
industrial activities that have marketing capabilities. The identification and
application of structural adjustment measures closely linked to environment
protection and increase in labor productivity will result in implementation of
the industrial policy based on the improvement of competitive advantages.
Measures for structural adjustment and development of the overall
glass, fine-ceramics and porcelain industry:
1. Supporting the development of friendly business environment;
2. Increasing market potential on competitive basis;
3. Promoting investments;
4. Developing industrial cooperation;
5. Supporting SMEs;
6. New projects of reorganisation and privatization;
7. Smoothing investment conditions;
8. Expanding the domestic market of glass, fine-ceramics and porcelain
industry;
9. Securing the environment;
10. Complying with the Regional Development Program of Romania.
GENERAL OVERVIEW
The glass, fine ceramics and porcelain industry is one of the global
industrial sectors with a rising trend of demand on the world market. In this
context, Romania is successfully maintaining a good position among the
main world exporters of glass, fine ceramics and porcelain household and
decorative articles.
Romanian Trade Promotion Center, 2009
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Romania-Glass, Fine Ceramics & Porcelain Industry
Major competitive players on international market are China
(household porcelain), Turkey (glass working automatic machines) and
Poland (glassware of lead crystal).
This remarkable position of glass, fine ceramics and porcelain
industry among the potential Romanian exporting industries is based on
some favorable premises:
• Outstanding skills of Romanian craftsmen in creating original and high
qualitative products, very much appreciated on foreign markets;
• Competitive price-quality ratio, due to high added value of products,
supported by strong creative departments and low cost of labor force;
• High flexibility in complying with customer’s needs and demands;
• Stable and longstanding business relations with foreign partners;(over
80 per cent of the output is exported on foreign markets, of which 60 per
cent on the EU markets);
• Larger demand in glass, fine ceramics and porcelain household and
decorative luxury articles on a most lively real estate market;
• Shifting the output towards energy-friendly glass products;
The Romanian industry of glass, fine ceramics and porcelain is
currently facing two major challenges:
• skilled labor shortage - which used to be considered a main strength
of the sector - due to a mass exodus to Western Europe;
• constant rise in energy prices and especially in natural gas prices.
Likewise the other Member States, Romania has to cope with
increasing competition from Asian products reaping benefits from efficient
low cost labor.
PRODUCTIVE POTENTIAL
By 2007 year-end, 3052 companies were playing in the industrial
branch of “Other non-metal mineral products” in which the industry of glass,
fine ceramics and porcelain was included. Those companies employed an
average number of 59405 persons, 99.9 per cent of them (59354 persons)
working in the private sector, with an average total turnover of lei 3746292
per company (lei 3746220 per company with private subscribed capital).
In 2007, the investments injected in “Other non-metal mineral products”
amounted to lei 1293103 thousand.
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Romania-Glass, Fine Ceramics & Porcelain Industry
OUTPUT
Between 2002 and 2007 and considering the inflation factor, the
output of building materials and other non-metal mineral products
scored a year-on year increase in value by 175.5 per cent, i.e. from lei
3988.7 million current prices at the beginning to lei 10987.1 million at the
end-year.
Both household glassware and household fine ceramics output
had a similar increasing evolution as the output of building materials
and other non-metal mineral products between 2002 and 2004. After
that they went down and have reached lei 115 million current prices in
household glassware and lei 179 million current prices in household fine
ceramics.
Output of building materials and other non-metal mineral products
-million lei current prices (RON)-
2002
2003
2004
2005
2006
2007
Total industrial output
128642.6 157836.3 86831.6 211081.9 247373.1 276110.4
Manufacturing industry, of which:
100157.9 123512.4 48312.0 170129.7 199286.8 222771.4
Building materials and other non-metal
3988.7
4859.3
mineral products, of which:
215
202
• Household glassware
178
205
• Household fine ceramics
Source: NIS – Romanian Statistical Yearbook 2008, 2009 Ed.
Note: …data not available
6375.4
6660.6
8822.6
10987.1
222
257
158
243
115
179
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DOMESTIC CONSUMPTION (RON currency unit)
The industrial sector of glass, fine ceramics and porcelain is capable
to meet the home market demand and to provide for the export offer as
well. The Government policy regarding incomes and inflation rates resulted
in diminishing consumption and purchasing power for some categories of
population and households.
The total monthly expenditures per household, by 2008, had an
average of lei 1915.2 (lei 657.2 per person) as against lei 1686.7 per
household in the previous year (89.8 per cent of total incomes and 91.4
per cent respectively).
Out of total monthly expenditures in 2008, 71.0 per cent were
allocated to consumption as compared to 72.0 per cent in 2007.
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Romania-Glass, Fine Ceramics & Porcelain Industry
Through 2008, the total consumption expenditures of a
household stood at lei 1365.4 per month and the money expenditures for
purchasing food and non-food goods and services stood at lei 1185.3 per
month (61.9 per cent of total monthly expenditures per household).
The other share of total money expenditures allocated for consumption, i.e.
the expenditures for monthly in-house food and non-food products stood at
lei 180.1 per household and had a share of 9.4 per cent of total
expenditures.
The monthly average dynamic of consumption expenditures had a
positive trend. The expenditures for non-food goods scored the most
significant increase (+18.9 per cent) and were followed by the expenditures
for food goods (+12.8 per cent) and services respectively (+12.7 per cent).
The monthly expenditures for non-food goods amounted to an
average of lei 429.1 per household and lei 147.3 per person of which
the expenditures for purchasing glassware, plates and dishes and
other household articles amounted to lei 2.9 per household (0.2 per
cent of total money expenditures allocated for consumption/month and 0.7
per cent of the expenditures for non-food goods/month).
The income groups, residence area, and professional status of the
head of the family made quite an impact on these expenditures.
The monthly average expenditures for glassware, plates and dishes
and other household articles amounted to lei 3.7 in urban area and lei 2.0
in rural area.
lei
Total
Total expenditures for non-food goods
• glassware, plates and dishes and other household
articles
Urban
Rural
429.14
498.79
338.67
2.92
3.65
1.96
Source: N.I.S. Coordinates of living standard in Romania. Population income and consumption in 2008,
2009 Ed.
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Romania-Glass, Fine Ceramics & Porcelain Industry
FOREIGN TRADE
The exports of household fine ceramics had a share between 0.25
per cent (2008) and 0.55 per cent (2003) within total Romanian exports.
The exports of household glassware and articles thereof had a share
between 0.31 per cent in 2008 and 0.71 per cent in 2003.
The imports had a share between 0.61 per cent in 2003 and 0.73 per
cent in 2008 (a peak of 0.76 per cent in 2005) and, respectively, between
0.57 per cent in 2003 and 0.58 per cent in 2008 (a peak of 0.63 per cent in
2006). Given the higher rates of imports as against exports, the trade
balance has been decreasing year-on-year and by 2008 the deficits were
as follows: EUR 329.6 million for household fine ceramics and EUR 219.6
million for household glassware and articles thereof.
a) Articles of fine ceramics and porcelain
-million EUR2003
2004
2005
2006
2007
EXPORTS
54.3
57.0
57.7
49.2
46.8
39.6
IMPORTS
6.7
8.3
13.1
16.4
26.2
33.8
+47.6
+48.7
+44.6
+32.8
+20.6
+5.8
Trade balance
2008*
Source: General Customs Directorate (data base)
Note: *) unrevised data from the General Customs Directorate
By 2008, the top export partners of Romania in terms of trade in
fine ceramics and porcelain were: Germany 21.2 per cent, Italy 12.4 per
cent; Hungary 12.4 per cent; France 8.4 per cent; Poland 7.7 per cent.
Import partners: Spain 21.2 per cent; Italy 14.7 per cent; Hungary 12.9 per
cent; China 10.1 per cent; Turkey 6.9 per cent.
b) Glass tableware, kitchenware, bathroom items, articles for office
use and household decoration
-million EUR2003
2004
2005
2006
2007
2008*
EXPORTS
58.7
49.3
40,7
36.6
28.2
24.9
IMPORTS
11.7
14.0
19.0
25.9
33.4
55.6
+47.0
+35.3
+21.7
+10.7
-5.2
-30.7
Trade balance
Source: General Customs Directorate (data base)
Note: *) unrevised data from the General Customs Directorate
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Romania-Glass, Fine Ceramics & Porcelain Industry
By 2008, for trading in glass tableware, kitchenware, bathroom
items, articles for office use and household decoration, the top export
partners of Romania were: Germany 30.9 per cent; France 13.8 per cent;
Italy 10.9 per cent; Bulgaria 7.7 per cent; the Netherlands 7.3 per cent.
Import partners: China 29.4 per cent; Turkey 14.2 per cent; France
11.7 per cent; Bulgaria 9.6 per cent; the Czech Republic 8.3 per cent.
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