AUSTRIA

Real estate firm Meinl European Land will invest 100 million Euro on the local realtors market this year. The firm’s Militari commercial center will be expanded to approximately 150,000 sqm in the future, depending on the market demand. The Militari commercial center was bought last year for 20 million Euro from Belgian company Liebrecht &Wood.

Construction materials firm Baumit will build another factory in Bucharest, likely to be in 2006, and then further facilities in Banat and Moldova. The total sum for this investment could be around 30 million Euro. Baumit is about to complete the construction of a dry mortar plant in Teius in a ten million Euro investment.

FRANCE

Spare-part manufacturer Ora Firmeca is due to open a factory in the Sadu Industrial Park. The two million Euro factory will produce spare parts for Volvo, Renault and Porsche and complement the activity of the Ora Firmeca factory based at Mizil. The new factory will have around 60 employees, many of them former Uzina Mecanica Sadu employees.

GERMANY

Home improvement store chain Praktiker is investing 35 million Euro in three new stores outside of Bucharest. Owned by the Metro Group, the chain has opened seven stores in Romania since 2002 and will launch the three new stores in Constanta, Oradea and Craiova this year.

Drug manufacturer Ozone Laboratories is planning to invest 14 million Euro over the next two years in new equipment, research and development and a new micro-production laboratory. It also intends to complete production of its bioequivalence centre, which will allow the firm to produce generic, or non-patented, drugs, as reported in Ziarul Financiar.

Investment fund Kardan has bought 120,000 square metres of land to develop a trade, residential and office complex in Bucharest for 15.5 million Euro. Kardan made the acquisition through its Polish-based Global Trade Centre (GTC) which has worked on the Europe House project and is working on America House in the Romanian capital.

ITALY

Pump and centrifugal compressor-maker Termomeccanica plans to invest some four million Euro by 2007 in moving part of its production to Romania where it will set up a distribution network for the eastern European region, according to Termomeccanica-owned Aversa Bucuresti. TMP Termomeccanica-Pompe, a member of Termomeccanica group, bought a 66.2 per cent stake in Aversa Bucuresti for 3.7 million Euro in November 2004. Aversa Bucuresti reported a turnover of 13 million Euro for 2004, slightly up on 2003 and its main export markets were Italy, Germany, France and Greece.

LUXEMBOURG

Scandinavian Broadcasting System (SBS) has taken control of Prima TV and one of Romania's leading radio groups in a 30.3 million Euro deal. The Europe-wide, but Luxembourg-registered firm, which also operates in western Europe and Hungary, acquired Romania's Kiss FM and Radio Star for 22.5 million Euro from MG Media Group Holding. SBS increased its stake in Romania's first commercial channel, Prima TV, to 86 per cent, after the purchase of an additional 48.8 per cent indirect equity stake and Prima TV debt for 7.8 million Euro from local firm Romanian Investment & Development (RI&D). This firm, RI&D, is owned by Cristian Burci, SBS's former Romanian partner in Prima TV. Burci resigned as Prima's CEO as part of the deal.

NETHERLANDS

Warehousing firm Rynart is opening a new distribution centre 23 km from Bucharest by the end of 2006. This will be part funded by an 11 million Euro loan from the FMO and a total investment of 30 million Euro for the first phase. Currently Rynart has 60 per cent of the Hungarian market in warehousing.

Damen Shipyards-owned Damen Galati plans to invest three million Euro this year in its existing facility on the Danube. This will include a new steel plate cutting machine, the extension of its production unit capacity through building ten new halls, a new panel line, one gantry crane and the replacement of outdated welding equipment. In 2004 the firm had a turnover of 72 million Euro and a 10.4 million Euro profit.

 

Distribution group Van der Vlist will invest a further five million Euro over the next seven years in its railway terminal on the IMGB platform in south Bucharest. The service, which connects to the national railway network, was opened last year in a 1.5 million Euro investment.

 

Perfetti Van Melle will invest 2.5 million Euro in a new sugar-based production facility in Cluj-Napoca, due to open next month. Active in 90 countries, the firm has so far invested five million Euro in Romania, and owns brands such as chewing gum Happydent and sweets Mentos and Alpenliebe.

NORWAY

Orkla Foods Romania has bought out the second largest pate and canned meat producer in Romania, independent firm Ardealul SRL. Last year the firm posted ten million Euro in revenues and employs 200 people. Orkla group entered Romania in 2002 through the purchase of Topway foods. Meat market sources told Ziarul Financiar the value of the deal could have been around five to six million Euro.

SPAIN

Wiring manufacturer ACE is completing a 14 million Euro investment in the construction of a production facility in Cluj-Napoca. At present, the firm manufactures cables for Seat and Volkswagen and the new factory will begin production in cables for Audi. The firm is also in talks with General Motors, according to Ziarul Financiar.

TURKEY

Fertiliser producer Azomures will invest 3.4 million Euro in modernising the equipment and increase capacity in harbour operators Chimpex Constanta, once the firm gains the approval from the Competition Council. The Targu Mures-based firm is the main shareholder of Chimpex with 74.3 per cent of its shares. Regarding the rumour that Azomures intends to leave Romania if the gas price further rises, vice president of Azomures Yetkin Erman told The Diplomat: “If the gas price increases by 20 to 25 per cent, we will be forced to stop production.”