12 car parts producers want to move to Romania

Constantin Stroe, chairman of the Association of Automotive Manufacturers of Romania (ACAROM), stated there were 12 car parts producers planning to build production facilities in Romania, but for the time being their plans were on hold as they were waiting for macroeconomic environment stabilisation.

"There are new investments, but they're all in stand-by. 12 European firms intend to relocate to Romania, they have found solutions, but they are delaying their projects. They are still saying the eastern part of Romania is not encouraging from the point of view of companies planning to relocate," stated Stroe. He chose not to specify the name of the companies planning to invest in Romania.

Foreign investments in the car industry have largely been operated in the past ten years, mainly in the western part of the country, where industrial parks are mainly filled by car part producers.

A new automotive pole has been shaping up in the past three years in the southern region, Oltenia, where Pirelli (250m-euro investments in the past three years to which a further 250m euros will be added by 2012) or Ford (pledged investments of above 1bn euros) have been attracted and where other suppliers, such as Johnson Controls, will bring production facilities.

Investments in the eastern area are low, though, and were mainly attracted by Iasi, where the biggest players are Delphi and Continental.

At the same time, ACAROM head warns about the volatility of possible investments. "There are two entities giving up investments here as they found better conditions 100 km west. Romania is still an opportunity, owing to the low labour costs and personnel adaptation possibilities," states Stroe. He also mentioned the importance of transport costs in the cost of car part production.

In the following period, car part producers are likely to face trouble as orders will go down amid falling car sales across Europe.