Honeywell Garrett SRL, the Romanian branch established by a division of the powerful American industrial group Honeywell, has been posting constant growth over the past few years, with turnover amounting to $74 million in 2002, compared with $2 million in 1998.
Turnover went up 85% this year, exceeding the initial 50% forecasts. Furthermore, the only Honeywell plant in Eastern Europe does not seem to have run out of room for growth, as the turnover projected in the 2003 budget amounts to $86.3 million.
Operating income is to reach approximately $14.5 million this year, the company officials say, which is 20% more than in 2001.
"At the moment, the European and international management of the Garrett Company, one of the main divisions of the American group is working on a project for transferring part of the productive facilities for turbo blowers aimed at commercial vehicles and cars to the factory in Bucharest," Gheorghe Dudau, Honeywell Garrett SRL general manager told Ziarul Financiar. He added a final decision was supposed to be made by the end of Q1, next year.
The plant makes four types of car parts (shafts, flanges, cases and rollers) and a flange set for turbo blowers used in the carmaking industry (aimed at diesel engine cars).
The project entails outsourcing certain Honeywell Garrett Romania operations to other component suppliers and replacing them with assembly lines "without impacting on the number of directly productive employees in the factory, but resulting in a significant turnover growth."
The company officials say the initiative is in line with Honeywell Group's strategy to develop its Eastern European operations, considering that both its clients and suppliers are migrating to this area.
The Bucharest-based plant's sales of car parts and subassemblies are directed to its "kindred" companies part of the American group: Honeywell Garrett S.p.A (Atessa, Italy) and Honeywell Turbo S.A. (Thaon Les Vosges, France). This year saw shipments going to other Honeywell plants, such as those in England and Japan, the Romanian officials say.
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