Building A Solid Business on Plastics Foundation

In over 14 years of work, two entrepreneurs turned their business from an importing one (mainly from Hong Kong), into an exporting one. The turnover of the Wolf Plastics Agora Test Rite International was placed this year at 10 million euros.

In 1991, a short while after the demise of communism, Gabriela Cosac Picos started to do business with Oscar Szoeke. She decided then that her 15-year long working experience in Romania’s foreign trade was an asset worth using for personal benefit.
"I started [the business] with importing from the Far East, from Hong Kong. We were at the time one of the well developed companies specialized in imports of plastic-made kitchenware," recalls Picos.

But the business took a different turn in 1994, when the unpredictability of exchange rates and four to five months lapses between placing the orders and getting the merchandise made it impossible to know the final sale prices.
These developments had a turn for the better, when the company switched to doing business in the European Union. Already companies in [neighboring] Hungary were in joint ventures with companies in Germany and Austria.
"They were providing West European quality at East European prices," said Picos. "One of our partners suggested we should start producing our own plastic-made ware. In 1997 we started production with imported raw materials and molds doing the same Western kind products, but 30% to 40% cheaper. It was clear for us the advantage of turning into a production company," explained Picos.

Currently the company makes 500 different plastic-made products plus other stainless steel and glass articles, which put the total number of different products at 2,000. Unique to this company is that it rents 300 molds. "Other local producers have their own 20 to 50 molds that they have to use for a good number of years to make them profitable. We are not stuck with one model for years: if one product gets out of fashion we simply stop importing that mold and go for another one. We are very flexible," says Picos.

The new production facility, located 10 kilometers outside Bucharest, was built jointly with the Austrian partner and meant so far a 2.5 million euros investment. When completed, it will make 5 million euros. Wolf Plastics envisages making round and oval shaped buckets, from one to 20 liters in volume, to supply the makers of washable paints.
"Everything is brand new, and complying with EU standards. As soon as we started producing the items, we already exported them to Bulgaria, Turkey and Hungary, and are currently negotiating to export in Spain and England," says Picos.
The business target for this year is to reach 10 million euros. "We aim to become market leaders. Always one has to map the road in advance, and not wait for the wave to give you a push from behind," says she.

The next important investment plan is for the company to turn into a logistic platform for other businesses too. It plans to build 800 square meters of office space on a 5,000 square meter plot of land it owns on the outskirts of Bucharest. Still, things are not all rosy. The company has to compete on the same market with importers who operate illegally, and do not pay VAT or customs taxes.