THE DIPLOMAT - BUCHAREST

Home | About Us | Contact
Embassies | General Consulates | Honorary Consulates | Representations Offices
List | Profiles
2004 | 2005
2004 | 2005

 

February - 2005

Foreign Investments

Canada

Electronics manufacturer Celestica will invest around 100 million USD in production hall in a greenfield investment in Bors, Bihor county over 6.2 hectares, to be completed in 2007. The firm will build high-capacity servers for banks and airlines and employ up to 4,000 people by 2007.

Denmark

Part of the Tuborg International Group United Romanian Breweries Bereprod (URBB) is borrowing 40 million USD to boost its capacity in its Bucharest factory, distribution network and employees, in a loan from a consortium of banks including BankAustria reditanstaltAG, HVB Romania and Raiffeisen, plus an additional loan of ten million USD from HVB with a payback period of six years.
URBB has a share of around eight per cent of the beer market and last year posted a turnover of 44 million Euro.

France

Distributor of mobile phones and Orange dealer Avenir has bought 45 stores from Goldstern International to more than double its hold on the phone retail network. Owned by Andrei Cubitchi of Timisoara, the store make-up is mainly based in theWest of Romania in
rented spaces. Avenir runs the Internity store chain, which has a 30-strong network on the Romanian market and the deal could amount to between one and two million USD, according to local reports.

Glass and ceramic producer Saint Gobain will invest around 40 million Euro in a new fibreglass factory in Ploiesti, set to begin in the middle of 2006. The operations will involve purchasing and then modernising an
existing site. This follows the start of construction of a 100 million Euro glass
factory in Calarasi.

Germany

Hypermarket store Kaufland is expected to open 50 stores and a 60,000 sqm warehouse in the next five years with an investment estimated at around 500 million Euro. The Schwarz-group owned store will open its first store this year in Bucharest, close to Bucur Obor.

Hungary

Fourth largest oil firm on the Romanian market Mol will buy out Anglo-Dutch owned Shell Romania in a deal worth around 70 million USD. This will boost Mol’s estate from 74 to around 133 petrol stations, as well as giving the firm a lubricant business and a joint
venture to supply airplane fuel with Henri Coanda Airport. Shell Gas Romania will remain on the liquefied petroleum gas market.

Italy

Furniture producer Ciatti will develop its Sebes-located factory with a further three to four million investment and an increase of employees to 140. Established in September 2004, with an investment of nine million Euro, Ciatti Sebes produces furniture for electronic
supplies and mainly exports to Italy, France and Germany.

Tyre producer Pirelli will invest around 110 million Euro over three years in a new high-performance tyre factory, close to its recently-established factory in Slatina, Olt County. This follows the announcement in October 2004 of a joint venture between the Italian firm and Continental for a 40-million Euro steel cord production plant in Romania, in which Pirelli will own 80 per cent against Continental's 20 per cent.

Netherlands

Retail division of Rompetrol, Rompetrol Downstream, has secured a loan of 15 million Euro to build, purchase and modernise its retail network from The Netherlands Development Finance Company (FMO). The finance institution, created by the Dutch Government 35 years ago, is active in
funding the private sector in 40 developing countries.

Poland

Door producer Porta KMI was due to open a Romanian production unit in Arad, as we went to press. Aiming to manufacture 100,000 doors per month, the firm is looking for sales in Romania and eastern European nations such as Bulgaria, Ukraine and Russia. The Arad factory starts with 100 employees and will aim to increase this to 300 workers.

Sweden

Cosmetic firm Oriflame owner Jonas al Jochnick is looking to invest around 20 million Euro in Romania, as reported in Ziarul Financiar. Owing to a growing middle class and an atmosphere of growth the millionaire boss sees Romania as a massive potential market. Although he also told the newspaper he would not be establishing a factory here.

Switzerland

Cement firm Holcim Romania will invest more than 32 million Euro this year in three new concrete plants in Bucharest, Timisoara and Targu Mures. The company also intends to modernise the ready-mixed concrete plant in Brasov and production lines in its cement plants in Campulung and Alesd in order to expand the existing waste processing capacities.

Turkey

Chicken meat producer Banvit is investing 40 million USD in a chicken processing complex close to Urziceni, near Bucharest. The project, with 15 million USD backing from the International Finance Corporation, includes a chicken incubator, farms, a meat processing factory, a sales centre and a freezer storage centre.

USA

Wrigley is set to buy the Kraft Foods manufacturing facilities of Sugus and Silvana in Brasov, which produce the Milka and Poiana brands, in part of the confectionery giant’s takeover of the sweet sector of Kraft Foods.

New York-based food and beverage manufacturer PepsiCo and General Mills have bought Romanian-based snack firm Star Foods from Greek firm Mitzalis in a deal worth around 20 million USD, according to analysts. Star Foods has one factory in Bucharest as well as a distribution network and recorded a
turnover of 40 Million Euro for 2003. PepsiCo sees the purchase as a launchpad for expansion into the Balkans.