The Diplomat Bucharest

Retailer sets up shop in Sibiu
Kaufland opened its 20th Romanian store in Sibiu after an investment of seven million Euro. With an area of 6,612 sqm, the store also has parking space for 332. So far Kaufland has created almost 4,500 jobs in Romania and invested about 287 million Euro.
Selgros ups local investment
Selgros Cash & Carry has invested 15 million Euro in its newest store in Iasi, bringing the total number of units operating locally to 15. A similar store is planned for Galati this year and will also cost 15 million Euro to build.
More spare parts for Sibiu
Spare part maker Ifert Plastics Technologies will invest three million Euro in a production unit in Sibiu for plastic-made technical components and parts for aluminium-treated car lights. The factory is likely to be built near Sibiu, on a 5,000 sqm plot.
Engine belt maker steps in
Optibelt, which produces transmission systems for the car industry and construction equipment, will invest 15 million Euro in a factory near Baia Mare to produce engine belts and electronics.
Steels pipes for cars in SlatinaProducer of chassis, car evacuation systems and engine components Benteler has invested 2.8 million Euro in a 5,000 sqm steel pipe factory in Slatina, Olt county.

Real estate firm makes giant leap
Regional real estate investment fund Immoeast has acquired 25 per cent of real estate developer Adama for 60 million Euro. Officials said 23.5 per cent of the investment comes in the form of a capital increase, while a further 1.5 per cent was acquired from existing shareholders. Other shareholders of Adama include New York-based investment firm Tiger Global Management, private American investment trust RomRe, owned by the Jesselson family, and the company’s management and founding shareholders.

Bank player starts-up
After eight years of presence on the Romania market, where it set up a rep office in 1999, the Bank of Cyprus launched commercial operations and its own leasing company last month. Plans by Bank of Cyprus for 2007 include opening seven branches, two business centres and a corporate service centre in Bucharest, said Board of Administration president Eleftherios Ioannou.

Retailer heads for city centre
Carrefour will invest two million Euro in a city centre location, after taking over the Univers’All shop in Piata Unirii. The shop is Carrefour’s first supermarket size in Romania, with 3,600 sqm displayed on two floors. The chain will also rent commercial space in the Colosseum shopping mall in Chitila, north-west of Bucharest, in 2009.
Third plant for malt producer
Malt producer Soufflet will invest 46 million Euro to build its third factory in Romania at Buzau according to Mediafax. The factory will be located in the industrial area of Buzau and will start its activity in 2008. The group has factories in Pitesti and Buzau.

DIY store aims for west
DIY retailer Brithouse is targeting the Banat and Transylvanian regions with an aim to open at least 15 shops by 2012. The retailer is investing two million Euro in its first shop in Romania on 11 Calea Buziasului in Timisoara. This will have a total area of 5,500 sqm of which 900 sqm will be a two level showroom. Brithouse estimates a turnover of five million Euro by the end of 2007 and targets 100 million Euro, a market share of eight per cent and 1,200 employees by 2012.

Eye on entertainment supplies
Paradigma Group, a Romanian-Dutch joint venture in entertainment technology has invested 1.2 million Euro in a warehouse to house its equipment. Fred Heuves, executive director, Ampco-Flashlight Holding within Paradigma, says the firm intends to invest a further 0.5 million Euro this year. The venture, between Dutch Ampco Flashlight Holding and AEI Broadcast Concept, sells audio, lighting and video equipment and rents out the same, as well as staging.
Factory makers set up production
Factory construction firm Remco Romania will set up a production facility in Sibiu by August this year. The one million Euro investment, which will employ 15 people, will have an annual construction of 5,000 tonnes of steel parts for its kit-style constructions.

Another car parts firm Sibiu-bound
Automotive components manufacturer Caucho Metal Productos (CMP) will invest three million Euro in its Sibiu county factory to double the production capacity. The company currently holds production facilities covering a 2,000 sqm and employs over 100 and has invested approximately 6.5 million Euro.

Kitchen systems need more space
Kitchen systems retailer Franke Romania has pledged almost one million Euro investments to build a new storage depot on its location on the outskirts on Bucharest. General manager Valeriu Cobaschi told The Diplomat the new storage capacity is scheduled for completion at the end of July and will cover 1,700 square meters.

Baltics join real estate frenzy
Arco Real Estate Consulting has started up in Romania with a target investment of five million Euro by 2008 in offices in the top ten cities of Romania and the six sectors of Bucharest. The company is also looking to employ 300 real estate consultants by 2008. In Romania Arco Real Estate Consulting will offer consultancy and brokerage and, in the future, a property valuation department. In Estonia and Latvia, its parent company Arco Vara also work as developers and constructors.