The land that Plastipak, a company based in Michigan, US, is eying is part of the Ploiesti Industrial Park. "We will soon begin negotiations with the representatives of Plastipak for the lease of an eight-hectare plot of land in Urlati.
The company has expressed its wish to sign a contract for this location and we will have to complete talks by February next year," said Carmen Bucur, legal manager of the Ploiesti Industrial Park (PIP). The manufacturer signed a pre-lease for the location in Urlati, PIP officials say.
Plastipak, a company with sales of more than one billion dollars a year, owns 20 factories worldwide, more than half of which are located in the United States.
The packaging producer owns four factories in Europe, two in Slovakia, one in the Czech Republic and one in Luxembourg.
The company is not carrying out any operations in Romania at the moment, but is in the process of establishing its local branch. Plastipak officials would not comment.
In 2004, when it decided to enter the market of Slovakia, Plastipak announced 20 million-dollar investments in the construction of a factory located in an industrial park. About three months ago, the local authorities that manage the Ploiesti Industrial Park leased a 25-hectare plot of land to P&G for forty-five years.
The American producer paid approximately 9 million euros for this location, sources on the market say.
The plot of land that Plastipak is eyeing could entail 3 million-euro investments from the packaging producer.
The construction of the Procter & Gamble factory will begin in the spring of 2009, and production will start in 2010, as the company plans.
It will invest a total of 100 million dollars in the facility in Urlati, the first personal care factory of P&G in Romania.
Only the first phase of this project will be done by 2010, which is aimed solely at the Romanian market.
The shampoo and other hair care product factory in Urlati will be the first greenfield project of P&G in Romania. It was initially designed as a regional facility, with 90% of the output set to go to foreign markets, but the worsening economic situation and the lack of incentives from the Romanian state made the company decide to inaugurate the factory with a lower capacity, which can only cover demand from Romania.
Locally, Procter & Gamble owns only one factory, in Timisoara, where detergents are made. It bought the facility from the state in 1995.
Procter & Gamble's consolidated business in Romania stood at 250 million euros last year, and the company was, therefore, the biggest player on the market of non-food consumer goods.
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