The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.

The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.
The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia, Lithuania.

Monday, 5 September 2016

Industrial Manufacturing and Engineering developments in Romania

Romania was among the EU countries whose industrial production rose in June when compared to the previous month. It recorded an advance of 2% in its industrial production. In the EU28, the industrial production was 0.5% higher in June 2016 compared to the same month last year.

In the first half of 2016 compared to H1 2015, the new orders in Romanian manufacturing increased by 7% while the turnover in industry increased by 4.3% and the Romanian industrial production increased by 1.3%.

Auto components manufacturer Compa Sibiu ended last year an investment program of 25 mil. Euro, which allows an annual increase of 15% in the company's production capacity. This year, Compa will continue the development program of the Sibiu plant, completing an investment of 10-15 mil. EUR, depending on market developments. The main customers of Compa Sibiu are Delphi, Bosch and Honeywell.

In 2015, the company reported total revenues of about 109 mil. EUR, up 14% from the previous year and a net profit of over 6 mil. EUR.

Cluj County Council will finalize shortly the modernization and expansion project of 16.8 ha of the Tetarom I industrial park in Cluj-Napoca (Central Romania) with an investment of nearly 10 mil. EUR, of which 50% European funds. At present, in the industrial park Tetarom I operate companies such as EnergoBit, Banca Transilvania, RCC Consult, EGH Import Export, Agressione Expres Impex, Siemens and CBC Development Design, total investments by these companies amounted to over 60 million EUR so far.

The production of white goods and domestic appliances in Romania doubled in the period 2009-2015, and if the trend continues, the market could break this year for the first time the 1 bln. EUR level.

Advance this year would be given, on the one hand, by the positive evolution of existing plants and opening of a new factory on the other hand. Thus, Germans from Kärcher are due to open a new plant in Curtea de Arges, where they will produce household and industrial hoovers.

Romania already has five largest producers of domestic appliances - Arctic, Electrolux, Philips, De'Longhi and Electroargeş - but also some producers of components. Production of appliances in Romania almost doubled from 2009 thanks to new investments and expansion of existing factories. Thus, the local market is taking shape more like a European hub given that the geographical position is favorable, the cost of labor is still much lower than in the West, and the staff is well prepared.

Automotive safety systems manufacturer Autoliv Romania, the local subsidiary of the Swedish group Autoliv, will relocate its factory in Resita in a new building located in the industrial park "Valley Industrial Area Terovei "owned Resita Local Council. Autoliv currently has 750 employees in Resita, and the company's plans are to reach the next period to 1,000 employees in this new factory.

Miele Tecnica, the Brasov components factory of the luxury appliance manufacturer Miele, is becoming one of the important exporters in Romania. All production of subassemblies in Brasov leave, according to the latest information of ZF, to other markets or to other factories of the German group. According to company sources, the Romanian branch registers one of the highest dynamics among all the Miele branches worldwide.

Info sources: ZF, Business Review, Romania-Insider.com

Are you interested in more details about the opportunities presented by the Industrial Manufacturing and Engineering in Romania? To collaborate with a local player? To acquire a local company or to expand your operations?

Perhaps we can collaborate.

We, at FRD Center, are constantly monitoring various sectors and analysing certain potential opportunities for investors, for exporters and for those looking to source from Romanian manufacturers.

What opportunity is interesting for you? How can we be of assistance to you?

For tailor-made sector data and B2B matchmaking with players in the Emerging Markets in Europe, feel free to contact the FRD Center team at:
email: europa@frdcenter.ro or tel: +4021 411 1459/60/61


FRD Center provides market research in Eastern Europe and the region, B2B matchmaking in the CE Europe and SEE, M&A assistance in Romania, in CEE and SEE, in the Emerging Markets in Europe.

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