May
2007
FOREIGN INVESTMENTS
 
Vol. 3 No.4  
 
   

The Diplomat Guides
Bucharest Hotel Guide 2007
Guide to the biggest names in local law - Bucharest 2009
Bucharest - International School Guide
LINKS
AUSTRIA
  • Refinery upgrade for bio-diesel deal
    OMV-owned oil and gas giant Petrom has signed a contract for bio-diesel supply with Prio Biocombustibil, part of Portuguese group Martifer. Prio Biocombustibil will deliver 20,000 tonnes of bio-diesel this year and is set to increase to 50,000 tonnes in 2008. Petrom will blend the bio-diesel with petroleum diesel in its two refineries. The fuel will enter the Romanian market this July. Petrom will invest more than eight million Euro in its Arpechim and Petrobrazi refineries for the project.
  • Housing bank supports expansion
    Raiffeisen Banca pentru Locuinte said it has total assets in 2006 of 75 million Euro, 85 per cent more on 2005 and the total amount of money attracted from customers doubled to reach 55 million Euro. To support the forecast growth in 2007, president Ionut Costea said the bank will invest 8.5 million Euro this year in distribution, IT and personnel training.
GREECE
  • Landline leader finds new generation
    Following a meeting with Prime Minister Calin Popescu Tariceanu, officials at landline firm Romtelecom decided to invest half a billion Euro in the Next Generation Network and high-speed Internet (NGN).
  • Importers bring Chinese buses
    Mixed-interest Alexandrion Group has signed an 80 million Euro contract with the largest Chinese bus manufacturer, King Long, to bring its vehicles to Romania. The contract was signed for a period of five years. According to general manager of Rochin, Spiros Iosifidis, the first buses will arrive in Romania by July this year. The company also announced it will open three new branches: a bus company, a long term rental company and an operational leasing company. King Long buses are destined for tourist and urban transport and have capacities from 28 and 65 passengers and prices ranging from 90,000 to 200,000 Euro.
  • Leasing network sets sail
    Piraeus Leasing plans to expand its sales points nationwide this year and plans to open nine new locations, as well as opening specialist leasing divisions in key Piraeus Bank branches, general manager Michalis Lachanas told The Diplomat. The firm currently has a five per cent market share and aims for a seven per cent market share by the end of 2007.
GERMANY
  • DIY store goes to Galati
    With an investment of ten million Euro, DIY store Praktiker has opened its 17th Romanian unit in Galati. The new store covers a total of 6,500 sqm sale area and brings the total investment by the German group in Romania to almost 150 million Euro and about 100,000 square metres in sales areas.
  • Brake systems maker drives in
    German-based brake systems manufacturer TMD Friction will invest ten million Euro in building an equipment production facility in Caransebes, Caras-Severin county. The firm has bought a 67,500 sqm plot and works are scheduled for completion by 2009.
  • EGovernment provider logs in
    EGovernment IT services provider InterLogics had opened a local office in Romania, following a decision to expand its sales and implementation in eastern Europe. Officials said talks are already underway with several local authorities to implement, modify or improve the eGovernment activities currently used.
CANADA
  • Gas exploration wins go-ahead
    Oil and gas company Oracle Energy Corp gas has received the green light from state officials to launch an exploration of a gas and hydrocarbon well in Nadlac, western Romania. The project operator is Carpathian Energy. Oracle holds a 20 per cent interest in the Nadlac field and five other oil and gas concessions in Romania. Oracle Energy Corp also has interests in Italy, Peru and Texas.
ISRAEL
  • Cleaning products find new ground
    Israeli cleaning product brand Sano is investing four million Euro in a logistic park for warehousing and a distribution center in Pantelimon, east of Bucharest, scheduled for completion in July this year. “It is possible that we could invest another two or three million Euro in the coming years in a production facility next to this,” country manager Doru Iosef told The Diplomat.
ITALY
  • Insulating panel maker for Ilfov
    Construction materials manufacturer Isopan Romania, owned by Italian-based Isopan, is investing 30 million Euro in an insulating panel factory in Popesti-Leordeni, Ilfov county. The plant has a production capacity of five million sqm per year and mainly targets industrial buildings.
PORTUGAL
  • Bio-diesel firm to double capacity
    Prio Biocombustibil, part of Portuguese mixed-interest group Martifer was poised to open its bio-diesel plant at Lehliu Gara, Calarasi county as we went to press, with an annual capacity of 100,000 tonnes per year. By 2010, the Group plans to expand its rapeseed and sunflower agricultural activity, invest in a new oil extraction plant and double its bio-diesel capacity.
SWEDEN
  • Security deal welcomes new player
    Swedish-based Securitas has bought 55 per cent of the shares in CPI Security Group in Romania for 1.5 million Euro. The purchase of the remaining 45 per cent of the shares will take place in 2010, conditional on the performance of the company until 2009.
USA
  • Chip design opens in Bucharest
    Microchip Technology has opened a new design centre in Bucharest, as part of the firm’s worldwide network of design centres located in India, Switzerland, California and Arizona (USA). “Our customers are increasingly turning to eastern Europe for design and manufacture,” said Rich Simoncic, vice president of Microchip’s Analog and Interface Products Division.

 
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