The Diplomat Bucharest

Prefab material plant for Ilfov
Romanian subsidiary of German constructor Max Boegl and Romanian-based construction company Bog’Art will build together a prefabricated constructionsmaterials plant on a six hectare land plot in Ciorogarla, Ilfov county. The companies will invest 22 million Euro in the project which will start this year and will be delivered in three phases by 2011, Romeo Botocan, executive manager of Max Boegl Romania told The Diplomat.
Bank aims for 50 branches
By the end of 2008 ProCredit bank plans to open 14 more branches, taking its total to 50, with its latest opening in Bacau last January. At the moment the bank has 36 branches in Romania. Established in 2001 in Romania, ProCredit Bank is specialised in providing finance for micro-enterprises.

Sunblinds maker heads to Buzau
Birmingham-based car parts maker Wagon Automotive is building a production site in Pogoanele, Buzau county, in an initial investment of almost eight million Euro. The company will, at first, build sunblinds for sunroofs beginning at a target date of April 2008, for export to two original equipment manufacturers in Germany. The site will create about 100 local jobs in production, office staff and management, according to the firm’s group international expansion director Guillaume O Tixier. Wagon Automotive is a specialist in body structures, closure systems and comfort products.
Property group snaps up Rasnov plant
New Europe Property Investments (NEPI) has bought an industrial facility from Hi-Lo Sisteme de Depozitare in a partial sale and leaseback transaction for around 15.2 million Euro, subject to conditions. The Rasnov-based property in Brasov county includes 21,000 sqm of gross lettable area containing 1,554 sqm offices. Last October NEPI, which is listed on the alternative market of the London Stock Exchange, invested 11.8 million Euro in four Romanian properties. The company targets office, retail and industrial property in Romania.

Low cost flyer takes up Italian job
Europe’s largest low-cost operator Ryanair will start operations between Romania and Italy in April this year. Flights between Arad and Milan Orio al Serio will begin on 1 April and between Constanta and Pisa (Florence) on 18 April.

Bank heads to Craiova
Israel’s second largest bank, Leumi, will open a new branch in Craiova. Leumi Bank has another 36 branches nationwide and a market share of under two per cent. Leumi Bank entered the Romanian market through the purchase of Eurom Bank in 2005 for an initial figure of 34 million Euro.

Poundshop starts up in Pitesti
Budget retailer Daiso has opened its first store in Europe inside Auchan Pitesti, Arges county, in an investment worth 450,000 Euro. Daiso sells products such as everyday goods, food, cosmetics and home decorations, where every product is five RON, (1.4 Euro or one pound Sterling), in Romania. The store in Pitesti streches over 462 sqm. In Japan, Daiso has a network of 2,400 stores.

Banking branch due by 2008 end
Commercial financial institution Doha Bank plans to open a branch in Romania this year. “We have already received the general approval for this year’s expansion operations,” Raghavan Seetharaman, executive director of the bank, told the Gulf Times, quoted by Rompres. Doha Bank is present in New York, Singapore, Tokyo, Shanghai and Turkey. In 2008 the bank plans to open branches in Germany, South Korea and Kuwait.

Energy trader increases grip
Leading Swiss electricity trader Aare-Tessin for Electricity (Atel) has bought Buzmann Industries, a Bucharest-based energy trader with a market share of 0.75 per cent. With this acquisition Atel will double its operations in Romania. Buzmann Industries supplies electricity to industrial customers, metering and technical consulting.
Industrial park for Pitesti highway
New Europe Real Estate Investment (NEREI) is developing an industrial and logistics park at kilometre 23 of the Bucharest-Pitesti motorway. New Europe Industrial & Logistic park will include available spaces of 1,000 sqm. Each company will have its own industrial space with separate parking places, uploading and downloading platforms for vehicles and green areas for each owner. The total area of the project is of 35,000 sqm. Construction works started last July and will end this year.
Equity fund buys up insurance
Central and eastern Europe-based private equity fund Royalton Capital Investors II has bought 95 per cent stake in Romanian insurance company Certasig from Spanish and Romanian investors. The management and local Romanian investors own the remainder of the shares. Certasig is licensed for non-life business. The company remains managed by Radu Frincu.

Outsourcing giant sets up in capital
Business process outsourcing firm WNS Global Services is opening a branch in Bucharest offering financial, accounting and customer support services in French, German, Italian and Spanish for its European clients. WNS, which began operations in India in 1996, is developing plans for additional centres in the region. The majority share-holder of WNS is US-based private equity firm Warburg Pincus.
New real estate investors on lookout
Real estate investment and development company D4 Investment Group will pour 100 million Euro into residential, commercial, office and industrial projects throughout Romania. “This is our initial step into the region,” Don Rosacker, managing partner at D4 Investment Group told The Diplomat. “We have the ability to bring in significantly larger amounts for investments. The average deal size that we look at is ten to 40 million Euro, but we can look at deals as large as 100 million Euro or more.”