In the past five years, more than 25 production facilitieslargely held by food industry multinationals have been closed asowners decided to restructure their businesses. In the wake ofclosures, production lines have been relocated either to otherdomestic production facilities, or to other countries of theregion, and almost 3,000 employees have been maderedundant.
Analysts maintain, though, that the swirl of plant closures isnot over and that we will see new production facilities being shutdown starting 2011.
"Closing plants has been a trend underway in Romania for severalyears. This is extremely painful, given the weak level of thedomestic industry against other countries. We are expecting a newwave of plant closures in all industries in 2011, and the mainproblem is that, given the low foreign direct investments andlimited efficiency in attracting new investors, Romania riskslosing its potential of Europe's industrial hub," stated MichaelWeiss, vice-president and partner with A.T. Kearney managementconsultancy.
Both he and the representatives of Colliers International realestate consultancy believe the trend has been prompted by severalfactors, but that the main reason behind such decision is afinancial one most of the times.
"Closing plants has been a trend underway in Romania for severalyears. This is extremely painful, given the weak level of thedomestic industry against other countries. We are expecting a newwave of plant closures in all industries in 2011, and the mainproblem is that, given the low foreign direct investments andlimited efficiency in attracting new investors, Romania riskslosing its potential of Europe's industrial hub," stated MichaelWeiss, vice-president and partner with A.T. Kearney managementconsultancy.
Both he and the representatives of Colliers International realestate consultancy believe the trend has been prompted by severalfactors, but that the main reason behind such decision is afinancial one most of the times.
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