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BORO20191216001

Joint venture sought for Romanian hardwood production plant

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ABSTRACT

A Romanian company, working in hardwood fabrication, seeks a partner interested to invest in a joint venture. The main objective will be the exploit of a patent, owned by the company, for a modular wood wall system, popular with clients. The high demand for this product needs the development of new production capacities.The company has the FSC (Forest Stewardship Council) certificate for their entire supply chain.

 

FULL DESCRIPTION

The Romanian company is an international manufacturer of wood products. The company is located in the western part of Romania, near an important European transport way and 50 km form the highway A1, connected to the western Europe. The raw material (unprocessed trees) are purchased on the territory of Romania. The company is surrounded by beech forests. The company operates a vertically integrated supply chain from the point of the raw woods entering the company’s processing facility through to the final sale of the manufactured product. It has a network of FSC certified wood suppliers and a constant care for the responsible management of the wood resource. The new core product is a unique patented solution for interior design with multiple market opportunities i.e. a modular wood wall system.
The finished products are demanded on the Romanian but also on the international market. The Romanian company is a manufacturer of quality solid hardwood products with exports to different countries.
The company’s assets and facilities includes:
• Approx. 20 hectares land in private ownership (complex area with all-around fencing 4 meters high) & over 26,000 m2 of undercover spaces (production halls and warehouses).
• Accessible by road and rail line (closest highway connection – 50 km distance; closest airport at 100 km distance).
• Electrical line connection with 20 kV and 10 MW power. 5 transformers (2MW each): 1 transformer to convert 20 kV to 6 kV, and 4 transformers to convert 20 kV to 0.4 kV.
• In-house rail line, connected to the national rail way system.
• On-site artificial lake with a total capacity of 24,000 cubic meters sourced from an internal dwell, as part of a fire prevention system.
• Recently completed, investment in connection to the national gas supply system
An investor in this joint venture can participate, together with the company, in developing a common business in wood processing. The Romanian company will participate with:
- the existing production space
- would be responsible for the process of building of the plant, using the production hall project made by the investor
- ensure on the location, the necessary utility facilities (water, gas, electricity, and sewerage).
The Romanian company expect that the foreign partner will be responsible for:
-cost of machinery for the production
-cost of production hall project, adapted to the existing situation on the location
-cooperation agreement (joint venture) signed for minimum 5 years
The Romanian company is looking for a partner to create a joint venture for a common production of this innovative modular wood wall system.


Partner expertise sought:

- Specific area of activity of the partner: The Romanian company is seeking a joint venture partnership or venture capital investor to participate in the financial effort to promote the company’s patented product, a modular wood wall system. The market demand of this modern decorative surface is very high, so more production capacities are necessary.
The partner is expected to participate in this joint venture with the cost of the machinery and the cost of the production hall design.
The investor would take part accordingly in the financial proceeds generated by the increased market performance of the company and product.


Advantages & innovations:

Advantages for the investor are:
• The company has access to vast forest resource, exclusively coming from South-Western Romania where the factory is located.
• The company is certified under the FSC scheme of certification and all the forest in its area is FSC certified, thus it can supply FSC 100% products. This is highly important for market players who are very sensitive about having all wood supplies FSC as a credibility factor for environmental commitment.
• The company’s kiln-drying capacity: 13 drying chambers with a total monthly capacity for pre-dried beech lumber of up to 6,500 cubic meters.
• Manufacturing high-quality and innovative products, but with the lower costs of Romania.
• The company manufactures a patented and registered design product which is already being used in their offices and HQs by some of the largest companies in the world


Development Stage:

Already on the market - The Romanian company, interested in this joint venture or capital investment, is very active on the international markets and since its inception in 1999 has had exports in different countries, manly in Germany, France, Italy, Sweden, UK etc.


IPR:

Secret Know-how,Patents granted,Trade Marks - Patent published in Europäischen Patentblatt in 2018. Registered Trademark at European Union Intellectual Property Office (EUIPO)

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KEY INFORMATION

Country of origin
ROMANIA
Date created
16/12/2019
Date updated
15/01/2021
Deadline
13/07/2021

PARTNERSHIP(S) SOUGHT

Joint venture agreement

CLASSIFICATIONS

INDUSTRY SECTORS
Building and Construction \ Other Industrial Technologies \ Agriculture \ Forestry
TECHNOLOGY KEYWORDS
INDUSTRIAL MANUFACTURING, MATERIAL AND TRANSPORT / Materials Technology / Biobased materials / OTHER INDUSTRIAL TECHNOLOGIES / Household Goods & Appliances / AGRICULTURE AND MARINE RESOURCES / Silviculture, Forestry, Forest technology / Wood Products
COMMERCIAL KEYWORDS
Silviculture and other forestry activities
MARKET KEYWORDS
CONSUMER RELATED / Other Consumer Related (not elsewhere classified) / OTHER / Agriculture, Forestry, Fishing, Animal Husbandry & Related Products
A2020