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Components attract an additional 200m euros

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20.12.2005, 20:59 7

Foreign investment projects focussing upon the production of automotive components announced this year are close to one billion euros.

Foreign automotive component manufacturers continue to regard Romania as an attractive location, as the Romanian Agency for Foreign Investments (ARIS) has registered eight investment projects, whose value exceeds 200 million euros, since November alone.

Nearly 20 foreign companies have announced or are carrying out investments in the production of automotive components since the beginning of the year, with their total value overshooting 650 million euros.

"The automotive component industry has attracted the biggest foreign investments this year and the trend will be maintained next year, as well," Ana-Maria Cristina, ARIS chairperson told ZIARUL FINANCIAR. In her opinion, Romania is attractive to foreign investors, particularly because of the low costs, but this is not the only explanation for the phenomenon.

"It''s all part of the huge relocation process that the automotive industry in Europe is going through. The companies pull each other together like a pyramid," Cristina said.

One such example is Coindu, a Portuguese upholstery manufacturer, which, after having decided to invest 30 million euros in the opening of a factory in Arad, was followed by Ert, one of its traditional suppliers. Ert will build a polyurethane foam factory in the Curtici-Arad free zone, with the total investment standing at 15 million euros. The company will make polyurethane foam in Romania exclusively for Coindu. The ARIS chairperson says that beyond low manufacturing costs, Romania is a location that is close to the European Union and "we have the advantage of a highly-skilled workforce."

The biggest investment project announced this year is that of French carmaker Renault. It will invest 215 million euros to build a gearbox factory in Pitesti, whose first year in business will begin in 2008.