High labour costs are driving Teba Industries group towards East Romania. The shareholders of clothing manufacturer Teba Industries have decided to close down the plant in Arad and move operations to Iasi, due to the shortage of personnel in West Romania and rising salaries in the area. "The shareholders want to work in more profitable areas. For the plant in Iasi, labour is cheaper, and it is easier to find skilled personnel," says Laura Madosa, general manager of Teba Industries. Over 900 employees that work at the Arad-based plant, which manufactures children's clothing, will be affected by the relocation. The decision to close the facility in Arad was made in October last year, and operations will be moved to Iasi by August. There are currently 600 employees left at the plant in Arad. "The company has offered the employees the opportunity to relocate to Iasi, but very few are willing to make the move," added Madosa, specifying that the employees who have accepted are mostly engineers and other specialists.
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