The Diplomat Bucharest - Romanian Economic News

Home improvement heads for Craiova
Home improvement retailer Baumax will open its fifth store in Romania in Craiova, following a ten million Euro investment. The Austrian retailer opened its first store in Brasov last month and will invest 30 million Euro to open stores in Sibiu, Cluj-Napoca and Targu Mures. The company aims to open five stores each year.

Novel housing for Colentina
French-Romanian real estate company Jules Verne Imobiliare will pour around 20 million Euro in the development of a 200 apartment residential project in Colentina, south of Bucharest. Construction works will start in the summer of 2008 and are due for completion at the end of 2009, according to George Doholici, general manager of the company.

New celebrity mags set for launch
International fashion magazines InStyle and celebrity magazine OK! will launch next year in Romania through the initiative of Attica Publications and Imako Media. The joint publishing and distribution venture will have an initial capital of 500,000 Euro, according to Business Standard. InStyle is a monthly publication for celebrities and lifestyle and is part of the US Time Warner Group. The rights to OK! are owned by UK media empire Northern & Shell.

Pharma chain in branch drive
Joint Icelandic-Romanian pharmacy chain Remedio plans to extend to 300 units by 2009. Remedio has now 68 pharmacies and intends to outstrip market leader Sensiblu which owns 213 pharmacies in the country. The company plans to open ten drug stores with an investment of 500,000 Euro this month and 100 more units in 2008. Three pharmacy brands. Remedio, Omnia and Montero will be rebranded under the Remedio name at a cost of three million Euro. Half of Remedio is owned by Pharma Investment, a subsidiary of Icelandic investment company Milestone Group. The other 50 per cent is owned by Newarch Investment, a company created by the founders of Montero and Remedio.

Pharma firm sets up local ops
Glenmark Pharmaceuticals is expanding its sales and marketing operations from Romania, with the launch of new products on the local market. Glenmark set up a European HQ in the UK in 2004 and started sales operations in eastern Europe with the purchase of Medicamenta in Czech Republic in April 2007. The firm established new operations in Bulgaria and Romania last month, but has no immediate plans to invest in manufacture or research and development in Romania.

Riverside centre sees cash rise
Real estate developer Plaza Centers will invest 600 million Euro in constructing Dambovita Center near Eroilor Metro in Bucharest. The property includes two office towers, ferris wheel, a building for the City Hall, a shopping centre, hotel and aparthotels on a land conceded by Bucharest City Hall to Plaza Centers for 49 years. Plaza Centers is part of Israeli company Elbit Medical Imaging, which owns the CentreVille aparthotels and Radisson Hotel on Calea Victoriei.

Power giant buys into wind energy
Power giant Enel has bought Blue Line, a Romanian company that holds the rights to develop wind energy projects in the Dobrogea region, due to be operational in 2010. This is part of the Italian group’s intention to invest around 4.1 billion Euro by 2011 in research into renewable energy. Enel owns electricity distribution firms Enel Distributie Banat, Enel Distributie Dobrogea and Electrica Muntenia Sud, which includes Bucharest.

Power tool maker to open second plant
Tools manufacturer Makita intends to open a second factory at the back of existing facility in Branesti, Ilfov county. The tool-maker entered the Romanian market earlier this year with its 26 million Euro factory close to Bucharest. The company will employ 100 more workers in 2008, adding to its current roster of 180. Its 2007 sales forecast for its Romanian operations, which export to Europe including Russia, is ten million Euro. For 2008 Makita expects sales of 25 to 27 million Euro.

Industrial developer hits provinces
Dutch real estate developer CTP Invest will pour around 100 million Euro into the Romanian market in the next two years. The company, based in the Czech Republic, has acquired 60 hectares of land and is planning to develop three industrial projects in Bors, Bihor county, Pitesti, Arges county and Cluj. CTPark Bors will strech over 66,219 sqm, while CTPark Pitesti will cover 242,372 sqm. CTP Invest was established in 1998 and has projects in the Czech Republic, Poland, Hungary and Romania.

Electroputere deal wrapped up
Constructor Al-Arrab Consulting has bought Dolj county-based transformer and locomotive producer Electroputere Craiova. The Saudi company paid 2.34 million Euro for a 63.82 stake in the firm. The company will invest 23 million Euro and assume the company’s debts to the state of 44 million Euro as well as injecting a further 37 million Euro cash into the project to solve Electroputere’s liquidity crisis. Al-Arrab’s main fields are construction, design, building and equipment in the real estate sector.

Real estate agency plans 20-store blitz
Spanish real estate agency Contempo plans to invest two million Euro by 2009 in 20 new branches in Romania. The company is targeting cities with over 300,000 inhabitants, according to Rafaela Nebreda, managing partner at Contempo. Launched this September, Contempo owns four stores in Bucharest and plans to open three more stores by year-end. In 2008 the company plans to complete real estate transactions worth over ten million Euro.