Florin Ionut, administrative and financial manager of SEWS Romania says the component producer will no longer invest heavily in development this year, consolidating its activity instead. SEWS (Sumitomo Electric Wiring System) posted a turnover worth 54.5 million euros (37.6 million pounds sterling) in the first six months of the year, a 17% increase against the same period last year.
"The growth in the first six months could have been bigger, given the investments we made, but a series of unfavourable circumstances, like the difficult situation on the European automotive market, the rapid growth of raw materials and transports costs have hindered our sales growth this year," said Florin Ionut.
According to him, another factor that had a negative influence on the turnover growth was the lack of workforce, due to the emigration trend in Hunedoara and Alba counties.
The SEWS official estimates a turnover worth over 100m euros for this year, after it had reached some 94.5m euros last year. The company started collaboration with the international group PSA Citroen-Peugeot this year.
SEWS also produces electric wiring for Honda, Renault-Nissan, Toyota and Ford-Mazda in Romania at the moment. "This year we will not become involved in big investment projects because, after the rapid growth seen in the last five years, we want 2006 to be a consolidation year. This year, we also intend to develop a partnership with certain suppliers of component parts for electric wiring in Romania and we are currently analysing the existing offer," Florin Ionut also said.
The company last year made investments of over 5 million euros, especially in the technological development of the plant in Alba Iulia, with the total volume of SEWS investments in Romania exceeding the 45 million-euro mark by the end of last year.
Sumitomo Electric Wiring Systems Ltd. Europe owns three plants in Romania, in Deva, Orastie and Alba-Iulia, with the biggest being the one in Deva, with a production capacity twice as big as that of the other two.
The construction of the Alba-Iulia plant was completed in 2004, and the investments in buildings, plots of land and equipment stood at over 10 million pounds sterling. Production facilities have a built surface area of 9,500 square metres and, according to the company management, Alba-Iulia was in competition with towns such as Sibiu, Cugir or Sebes for this facility. In order to complete work for all three plants, SEWS performed a capital increase of 4.2 million euros in 2004.
In Romania, Sumitomo Electric Wiring System Europe started its investments in 2000, with the development of the wiring plant in Deva, Hunedoara county. Later, a similar plant was built in Orastie and then in Alba Iulia, Alba county.
SEWS in Romania
Posted 54.5 million euro (37.6 million pounds sterling) turnover in H1, up 17% on the same time last year
Expects this year's turnover to exceed 100 million euros, compared with the about 94.5 million euros in 2005
Has added PSA Citroen-Peugeot to its list of customers, next to Honda, Renault-Nissan, Toyota and Ford-Mazda.
Began investments in Romania in 2000 with the wiring factory in Deva, Hunedoara, later joined by the facilities in Orastie and Alba Iulia, Alba.
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