Germany's Draxlmaier, one of the first foreign manufacturers in the automotive industry to set foot in Romania, expects to reach turnover worth 180 million euros this year, up around 9% on 2007.
The company ended last year with turnover worth 165m euros, below the initial estimates launched in the third quarter, of 175 million euros.
"For 2008, we target a 15m-euro increase, amid a stable customer portfolio and production level. At the same time, we also saw costs increase," stated Ferdinand Zilcher, an administrative director for Romania with Draxlmaier.
In order to limit the impact of the 30% cost increase, the company implemented programmes aimed at boosting productivity, which had different results in its five Romanian plants.
Draxlmaier built its first Romanian plant in 1993 in Pitesti, producing dashboard systems, followed in 1994 by an interior part plant in Codlea and in 1998 by a plant manufacturing electrical parts for engines in Satu Mare. After 2000, the company built another two facilities, in Timisoara and Hunedoara, with overall investments worth 220m euros.
For 2008, the company's representatives announced investments worth 4m euros.
Whereas in 2008, the total budget earmarked for the company's domestic development was cut to 4m euros compared with 30m euros last year, investments aimed at employee specialisation and training remained unchanged at 1m euros.
In the past year, Draxlmaier has seen its overall number of employees fall slightly, from over 18,000 to around 17,500 at present.
The car part producer's turnover is based on the export value of production generated by the five plants. Production is transferred to customers such as General Motors, Volkswagen, BMW or Porsche or to other CEE units of the group.
The company does not have any Romanian customers and Draxlmaier's representatives stated that Ford's entrance in Romania would not determine the sale of certain products on the Romanian market.
The Romanian Agency for Foreign Investments put this year's foreign direct investments in Romania at over 7 billion euros, with car part production to still be the most dynamic sector. However, the amount of investments aimed at this sector is in decline.
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