Car parts attract new wave of investments

Foreign investments in the car parts industry are set to exceed 1bn euros this year and will create around 8,000 new jobs, according to information provided by the National Agency for Foreign Investments (ARIS).
In 2006, the agency monitored investment projects aimed at the automotive sector worth over 600m euros. “ARIS is now monitoring around 24 greenfield projects in the automotive sector, all of them confidential, whose overall value stands at 1bn euros,” stated Sorin Vasilescu, ARIS director. He specified that German companies are still the biggest investors, followed by French, Japanese and Italian companies.
“Most companies come here to produce for their parent companies and export markets. Producers working for Dacia are already present, whilst the number expected to arrive is relatively small,” said Vasilescu.
The director at ARIS added that in the coming period, the appeal of Romania for such investments is expected to remain at the level registered over the past three years.
According to the agency surveys, the largest part of planned and ongoing investments is still concentrated on the west of the country, because of its proximity to the border and the road transportation routes to Western Europe, which is the main destination of Romanian produced parts.
“However, new locations are still emerging, such as Brasov, Iasi, Ploiesti, Slatina and areas located in the vicinity of major carmakers-Pitesti and Craiova, after privatisation.
In the area around Arad and Timisoara, industrial parks are already jam-packed with foreign firms,” added Vasilescu.
In Craiova, after the takeover of Daewoo plant, the future producer is predicted to have a similar effect to the one produced by Renault in Mioveni, which brought along several of its traditional suppliers.
Numerous large investments have already been made in the area, one of which by Pirelli. Vasilescu was unable to provide an estimate on the value of investments involving Craiova.
“In terms of investments, it is not the price that matters so much, but the location’s facilities, because the producers want to start production as soon as possible (…),” says Vasilescu.
This is the main criterion most investors take into consideration when choosing future locations. So far, investors have primarily been lured to the industrial parks in the biggest Transylvanian cities or others close to them.
“We’re trying to attract some investors to Satu Mare and Baia Mare, however, both these cities are experiencing a labour shortage,” stated Vasilescu.
Areas with available workforce were identified as the industrial parks developed around Sibiu, Brasov and Ploiesti.
In 2006, ARIS monitored 18 projects in the automotive sector. “(…) What’s important is that the 18 projects can generate 7,280 new jobs during 2006-2010,” concluded Vasilescu.