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2004 | 2005
2004 | 2005


May - 2005

Foreign Investments



Mittal Steel has invested 54 million Euro in its Galati plant, formerly Sidex, in an installation to remove high-temperature oxide residues. The new installation aims to double production of its thin metal sheets by using chloric instead of sulphuric acid. The company, which is part of Mittal Steel Group, said that two thirds of its annual output will be exported to countries in western Europe and southeastern Asia. The group owns other three steel plants in Romania: Mittal Steel Roman, Mittal Steel Iasi and Mittal Steel Hunedoara.



Renault Group has invested 18 million Euro in the opening of a ‘CKD’ export center based in Mioveni, near Pitesti, which showcases a complete set of components out of which automobiles are assembled. The centre has a surface of 30,000 sqm and is due to be extended to a 60,000 sqm, making it three times as large as the main CKD center in France, according to Louis Schweitzer, president of Renault Group. The first client of the CKD center is the Moscovite factory Avtoframos, which is planning to start producing Logans soon.



Sparkling wine brand Angelli, part of Astese Production, has a plan to spend over one million Euro on promoting brands and product launches, according to Ziarul Financiar. This year it also aims to modernise its production facilities and develop its customer networks. Production capacity is reported to be around 25 million bottles a year. Astese was bought in 2003 by the Henkell&Sohnlein group.

Last month Selgros Cash&Carry started construction work on a new supermarket in Arad, which is due to be open in August. The average amount usually invested by the German company in the opening of a supermarket unit is 15 million Euro, which is tipped to be the level of investment. The shop will occupy a ten hectare surface, of which 9,500 sqm will be used for the supermarket.

Gas firm Romgaz and German gas company Wintershall will invest 3.5 million USD this year in a new natural gas well near Sighisoara, Mures County, according to Harald Kraft, Wintershall Romania's general manager. The firms also have plans for investment in a further natural gas well next year. Romgaz also cooperates with other international companies such as Falcon Oil&Gas, Amromco Energy LLC and Schlumberger Logelco.


IT services supplier Siemens Business Services has bought out the Romanian-based IT technology firm Forte Company for about ten million Euro, helping its intention to become one of the main IT companies on the Romanian market. The Forte company, founded in 1990, registered over 22 million Euro in turnover last year.

Sport System Development (SSD) Lotto Romania, distributor for lottery equipment and Stonefly shoes, will invest one million Euro in two more units in Bacau and Timisoara to its shop network, according to the boss of Lotto Romania, Razvan Rosca. The network currently has 14 shops in Bucharest and Romania.



Elran Holdings and New Pharm Drugstores will set up a nationwide drugstore chain in Romania, Arnon Arbel, first secretary for economic and commercial office at the Israeli embassy told The Diplomat. Under the New Pharm label the project will cost over 3.8 million Euro. The joint company will open its first drugstore in August in Constanta in a large format, selling products such as medicine, cosmetics and hygiene products. Romania is considered by Elran-New Pharm a drugstore business opportunity, since it lacks stores with a drugstore concept. New Pharm Europe will operate as a private company in Romania. Elran and New Pharm will each own half of the company. Elran is also active in real-estate.



Food Styles Group intends to open in Bucharest four fast food units, through an investment worth one million Euro. The first outlet, Big Time, worth around 300,000 Euros, has just opened on Calea Mosilor. The group also intends to extend the chain to other Romanian towns and then further on to Bulgaria, Hungary, the Czech Republic, Moldova and Ukraine.



Polish Enterprise Fund V has now bought a majority share in the local Artima supermarket chain. This should help the firm’s plan to extend to 50 supermarkets by 2009. The investment for each of the new supermarkets is 500,000 to one million Euro, depending on their location and size, so the total investment is likely to exceed 25 million Euro. Ex-Billa chain chief and present executive director of Artima, Clemens Petschinkar said a new Artima shop will open in Dej in June.


Food product firm La Festa will invest around four million Euro in its Valenii de Munte plant. So far the firm has invested approximately 20 million Euro in Romania and last year saw a 40 per cent growth in turnover. This year the firm will concentrate on the instant food products and soft drinks sectors, as well as increasing exports.


Pipe manufacturer Artrom Slatina, part of the TMK Group, has invested around 2.3 million Euro in two new thermal treatment lines. The firm plans to slightly increase these investments next year, according to Ziarul Financiar. The pipe maker, which targets car manufacturers, exports around 85 per cent of its products to western Europe, USA and Canada.


South Korean-owned Daewoo Mangalia Heavy Industries (DMHI) plans to invest eight million Euro this year and a further 12 million Euro in 2006. The firm has signed a 387 million Euro contract with German ship owner Hamburg South for six container carriers. Last year the shipyard signed a 155 million Euro contract with German ship owner Gebab and is now negotiating another 193 million Euro contract with the same firm.


Merona Holding AG, through PAL Braila, is investing 40 million Euro in a furniture factory, a production facility for applying melamine to particle boards and a thermoelectric plant in Braila. The furniture factory will have a capacity of 600 units per day and also manufacture loudspeakers, according to Ziarul Financiar, where 200 people will be initially employed. In total, the firm has an investment programme of 100 million Euro.


Honeywell has bought out an automation and control systems plant in Lugoj in the Banat region, following the global firm's purchase of British firm Novar, which previously owned the factory. In related news, the local branch of the industrial giant will also be supplying equipment worth seven million USD for chemical producer Oltchim. The American firm, which has a Bucharest-based facility, therefore aims to double its number of local employees to 1,000.

UPC, the third largest firm on the Romanian cable TV market, will invest two million Euro this year launching fast-paced Internet services. According to UPC representatives, the Internet connection the company provides will have the fastest speed a cable TV company has offered so far in Romania. UPC’s main competitors are Astral and RDS. Cluj-Napoca, Timisoara and Ploiesti are due to make UPC Internet coverage available in the next two months.