In the beginning of the year it seemed a lost bet to double your turnover being a constructor that has no contracts with the state. Now it seems to be a winning bet.

By Radu Burlacu   

   Good signs for the construction sector - one of the most affected areas of the Romanian industry by the global crisis – didn't exist for the year 2011 not even in January, nor for the begining of autumn. But there are also exceptions to the rule. Thereby, some constructors are like from another movie, a slightly older one, from 2006-2007, when there were not enough constructors to build everything that was there to built.    DOUBLE AGAIN? Earlier this year, MONEY EXPRESS was writing about Mihai Lung, the entrepreneur from Baia Mare, that he is “probably the only Romanian constructor that succeeded to double its business year after year”. Furthermore, even for 2011 the businessman has budgeted a turnover increase of just under 100%  - and by the end of September Mihai Lung - which owns a group of ten companies with activities in constructions and not only, grouped together under the umbrella of Inserv Holding - says that the objective is like accomplished. “We estimate that we will end 2011 with a consolidated turnover, at group level, of approximately 54-55 million Euros", says Mihai Lung. In fact, in the first half of 2011 the companies within the group achieved a turnover of 27.3 million Euros, with less than one million below the result from 2010, when the consolidated turnover of the group was 28  million Euros. It is true that this year the company has pretty small chances to be among the top ten biggest construction companies in Romania, but the trend that Inserv Holding is on – strating in 2005 when the company had a turnover of approximately 2.5 million Euros and almost doubled its incomes, year after year – could be, on medium term, a successful one. At least that's what Mihai Lung thinks, who in all this time refused to participate to auctions for works financed by the state, focusing only on private works. In fact, this is the secret of success for the 44 years old constructor from Baia Mare. “There are several reasons why I avoided working with the state and I will tell you two of them: first, there are delays in payment of works and second, the access to these works is not a normal, natural one, meaning the best wins the auction", says Mihai Lung. A strategy that helped him to maintain a growth rate that not even construction companies that obtain works "with dedication" fail to maintain it. For example, the company Confort from Timisoara recorded a growth in turnover of 43%, Tehnologica Radion of 31,5% and Delta ACM of 28%. All these companies have a large part of works from the infrastructure area (roads, highways, etc.), state funded works.

    A CONTINUOUS DECREASE. According to the latest reports from the National Institute of Statistics (NIS), during the period January-July 2011, the volume of construction works decreased by 2,2%, evident decrease in the new construction works (-4,7%) and in maintenance works and current repairs (-4,0%). Instead, the works of capital repairs increased by 8.9% over the same period of time last year. NSI report also shows that in the first seven months of 2011, 22.822 construction permits for residential buildings were released nationally, decreasing by 5.3% over the same period of time last year but there was an 11.4% increase in non-residential buildings – exactly the area of interest of the constructor Mihai Lung, who contracted two works for private companies, for investment funds or private investors - basically a niche discovered by Mihai Lung. An example could be the construction of the shopping center "Dragonul Rosu" from Voluntari District (in the north part of Bucharest), a shopping center of a approximately 40,000 square meters, financed by the company Niro Investment, or the rehabilitation of Grand Hotel Boulevard from Bucharest. We can also mention the modernization of Silcotub Plant from Zalau or the constructions of production warehouses for EATON Romania, in Baia Mare. Therefore, Mihai Lung succeeds, on one hand, not to get affected by the financial blockages that affect inevitably almost all the other constructors that opt for public works, and on the other hand, he succeeds to preserve an image of  an uncontroversial businessman.

AND OTHER THINGS. Another asset that the constructor from Baia Mare has, is the way in which he has structured its business around the main activity of general entrepreneurship in construction. He has its own factory for metallic structures, he's own design company, special transportation company and electrical and sanitary installations company. When we say INSERV Holding we also mean a company which deals with tests and technical analysis of building materials that are going to be incorporated into the projects that are being carried out, a management company through which the entire holding is lead but also an investment company which last year acquired the assets of the Research and Mining Design Institute* [de pus nota in subsol, ca eu din open office nu stiu sa schimb pe fiecare pagina sa fie diferit](*Institutul de Cercetari si Proiectari Miniere), a building over 10,000 square meters from Baia Mare which is going to be turned into a hospital – INSERV Holding's own investment. Another investment is the construction of a Hotel in Cavnic (Maramures County), establishment that will be operated also by a company within the group. And last but not least, Mihai Lung also owns a regional media corporation, which includes a TV station, e-maramures.ro online portal and a radio station. TV and radio broadcasting covers the entire northwest area of the country - but the ambitions of the entrepreneur in terms of core business, regarding the construction activity, go much higher: he wants to go from a regional player to a national player. In large part he succeeded, because starting this year more than half of the works  that are conducted by him are not from the Northwest area. That leaves him just to reinforce this position in the years to come. 

   *Long has two meanings here:1. is the translation of Mihai Lung's surname; 2. its an adjective

The latest project of Inserv Group, Cordia Residence “Nightingale Park” in Bucharest has been awarded this week the prize for the best residential assembly in Romania, in 2010. The prize was granted by a jury made up of 120 top managers within the national real estate field, during the Gala organized by Construction & Investment Journal held on the night of 8th December 2010. The residential assembly Cordia Residence “Nightingale Park” is a luxury real estate project developed in the northern area of Bucharest, near Baneasa forest. The developer is the Futureal Group, which is also the owner of Gold Plaza Baia Mare. The “Nightingale Park” complex comprises 119 premium suits, which are delivered to the buyers completely furnished and fitted out.

Each apartment was designed using the “smart layout” concept, so that all the requirements and intimacy criteria of a modern family be successfully met. The finishing is personalized for each apartment so that there aren’t two suits alike within the assembly. The success of the concept and the quality of the executed works were the main advantages in winning the title for the best residential assembly of the year.

“This prize is owed to the Futureal team and to our constructing partners involved in this project. The Futureal group has built, in 2010, 270.000 square meters and we plan to invest between 50 and 100 million euros in Romania”, said Gabor Futo the CEO of Futureal Group.

Inserv carried out all the interior and exterior finishing for the “Nightingale Park” assembly so that it was able to hand over the construction with immediate possession in less than 10 months. The total built area is 26.000 square meters, distributed in two blocks, each of seven storeys of which two are underground.

“Cordia Residence” is a residential complex of 26.000 built square meters. In what concerns the construction, we were the general contractor. We carried out finishing, fittings and structure works, it is a project consisting of 119 apartments of two, three and four rooms”, said Horia Novaceanu, the Executive Manager of Inserv SA.

The prize won for this residential project confirms once again the position held by Inserv at the top of Romanian constructors. At the end of this year, Inserv Holding, administered by the businessman of Baia Mare, Mihai Lung, will sum up over one million square meters built during its 12 years of activity.

Today, Inserv SA has handed over the first apartments from the residential Complex “Cordia – Parcul Privighetorilor” in Bucharest to the final beneficiaries.

Inserv SA has executed all the electrical, sanitary and thermo installations works for this project as well as the indoor and outdoor finishing works. The project belongs to the developer Futureal, a former collaborator of Inserv SA for the construction of Gold Plaza Mall Baia Mare. Situated in an exclusivist area, the northern part of Bucharest, the Complex “ParculPrivighetorilor” is offering a series of luxury apartments, with premium finishing and best quality materials, designed to meet the most sophisticated tastes.

DOWNLOAD HERE THE PRESENTATION OF "PARCUL PRIVIGHETORILOR"

After a steady work against the clock, Inserv Holding, the builder of the first mall of Baia Mare has handed today, 4^th November, the key of the commercial center Gold Plaza to the beneficiary of the work, Futureal and Immofinanz companies. The developers of the project have appreciated the cooperation with Inserv Group, including the reliability of its employees. Eran Socher, managing director of Futureal, confessed that the Inserv team was one of the most professional ones they have cooperated with, so far. The constructor of the building has also been congratulated by the local authorities. The mayor ad-interim of Baia Mare, Istvan Ludescher, in his speech at the Inauguration of the mall, has underlined that part of the success of the commercial center Gold Plaza is due to the team of Inserv Holding and to manager Mihai Lung.

Mr. Mihai Lung has handed the key of Gold Plaza mall to Mr. Gabor Futo, general manager of Futureal. The latter has thanked the Baia Mare businessman for the effort made by Inserv Group, so that the mall might be finished in record time. “I wish to thank and to underline our partnership with the builder. I would like to say that our partners and subcontractors have worked night and day so that this project could become a reality.” stated Gabor Futo, CEO of Futureal. From the construction point of view, the Gold Plaza building is one of the most successful projects of Inserv. Hundreds of workers worked every day so that the edifice should be finished within two years. Gold Plaza Commercial Center is 33 meters high, and the built area is of 60.000 square meters. For the construction of the building 23.000 cubic meters of concrete have been used, and for the reinforcing structure of the building 3 million kilograms of reinforcing steel have been used. It is the biggest commercial complex in the north-west of the country, fact that places Inserv in the top of the greatest builders of Romania.

Moreover, the managing director of the project Gold Plaza told the local constructor that one of the most satisfying experiences was the collaboration with his team. “Futureal is a big company. This year, we succeeded in making it to the top 10 as the most active company in Europe in the real estate field. Therefore we have a large experience in working with the constructors and I can say that I cannot recall, these past years, to have had such an open, profitable and satisfying collaboration as the one we had with Inserv. The fact that there was a company here in which we could trust, probably more than we could have trusted one of our own, was a real blessing for us. I would like to thank all of you” said Eran Socher to Inserv team.

The Kaufland store in Campulung, Arges County, was inaugurated Wednesday, April 28, in the presence of local authorities and other stakeholders. The new Kaufland store was completed by Inserv SA, as general contractor, with an important contribution of Inserv Steel, for the metallic structures production and of Inserv Trans as construction equipment provider.

The integrated solutions provided by Inserv Holding companies resulted in a complex commercial construction of 5000 square meters, parking spaces and hinterland logistics of 7500 square meters and a car access via a roundabout.

This week our company started the demolition process of the cyanidation plant located in the center of Baia Mare, on 77 Victoria Street. The contractor is Inserv SA and the demolition works will be performed using the equipment provided by Inserv Trans who will also ensure proper recycling and transport of waste materials. The buildings to be demolished are part of the ore processing plants developed during the communist period. After finishing the project, the space will be used for civil or commercial buildings.

On 1st of April 2010 INSERV SA was awarded a Certificate of Authorization from the Romanian Civil Aeronautic Authority (RCAA) a prominent designation that recognizes INSERVS’s knowledge and capability to perform activities of airport construction and infrastructure. This award was issued after a rigorous audit and will open up new markets and opportunities.

The certificate grants INSERV the right to manage construction, repairs and maintenance projects of runways, taxiways and aircraft aprons, execution of civil and industrial buildings and related installation, parking access roads and vehicle parking areas, steel construction, low voltage power systems and airport fencing.

INSERV thus becomes one of the few Romanian construction companies that have capabilities and required authorizations for broad services and solutions in airport construction and infrastructure.

INSERV once again confirms its position among construction market leaders and, furthermore, will focus its efforts to benefit local and international investors in Romanian airports by delivering advanced and comprehensive integrated construction solutions and services that fully meet client’s business needs.

see the Certificate