Largest Greenfield Investments Completed Last Year In Romania

01.07.2014 By Dana Ciriperu

A new hydropower station, an oilfield-equipment manufacturing plant and a research and development center for the automotive industry are the three largest greenfield investments concluded in Romania last year, according to a ZF analysis that takes into account only production operations and leaves out retail projects.

Hidroelectrica’s 160 million-euro finalized investment in a 31.5 MW hydropower station in Racovita (Sibiu county), a project initiated in 1989, Lufkin’s plant located near Ploiesti (a EUR130 million project) and Bosch’s EUR77 million investment in Cluj together generated more than 700 new jobs.

Another two projects topping EUR30 million that were finished in 2013 are the car break pads plant that US Honeywell launched in autumn in Ploiesti and Italian-held De’Longhi’s unit of Cluj that manufactures home appliances.

The two projects in their turn created over 500 jobs. However, producers’ expansion plans will drive the number of employees to more than 1,300 by 2015.

For the economy of Cluj county, seriously hurt in 2011 when Nokia left Romania, the arrival of Bosch and De’Longhi in the same industrial park was a true breath of fresh air. The fallout of Nokia’s exit was also eased by hiring done by US group Emersson, which has expanded in Romania in recent years.

Among Romanian entrepreneurs, an extremely active investor was Marcel Barbut, the owner of Adeplast, who last year opened up 4 construction materials plants after investments of EUR23 million, tried a floatation on the Bucharest bourse, which failed though, and is now considering state aid to take further the expansion plans he’d wanted to finance through the capital market.

Beyond the completed projects, 2013 also stands out economically through the EUR300 million project Germany’s Daimler announced in Sebes, Alba county.

A ranking drawn up by the Department for Infrastructure Projects and Foreign Investments shows that 20 of the largest greenfield investments carried out in the past five years have generated around 10,000 jobs and cumulated nearly EUR1.2 billion.

But foreign direct investment fell in the past five years, from a peak of almost EUR10 billion in 2008, to some EUR2 billion in 2012.

(English version by Catalina Apostoiu)