Relocation from England means double sales in Romania

Bearings producer Timken Ploiesti, a subsidiary of U.S. group Timken – the world’s third-largest player on this market, will double turnover in the next years, following relocation of operations from one of the group’s Britain-based plants to Romania, said W.R. Timken, the chairman of Timken.

The relocation decision was made after Timken bought a British company (Torrington) and concluded that one of its plants (based in Darlington) had a bearings portfolio that could be produced for less money in Ploiesti.

“The turnover of the Ploiesti-based plant will revolve around 40 million dollars this year. We estimate an annual growth pace of 25% in the medium-term, which will push the sales of Timken Ploiesti up to 70 million dollars. That means almost twice the current sales level,” W.R. Timken stated.

The company will continue to export the bulk of its output.

Timken group bought the former Rulmenti Grei Ploiesti from the State Ownership Fund in 1997, when the company’s turnover amounted to some 8 million dollars. Timken acquired 70% in the company’s shares for approximately 40 million dollars.

“When we bought, we thought we would use the plant to enter the Eastern European markets. However, due to the investments that exceeded 30 million dollars and to the quality of the workforce, the plant evolved from its regional provider status to a global force,” said James Griffith, president and CEO of Timken Group.

Griffith and W.R. Timken were in Romania this week, as the group’s Board of Directors met in Bucharest. The two officials also met with President Ion Iliescu and Premier Adrian Nastase. Is Timken interested in buying other Romanian plants, especially since bearings maker Rulmentul Brasov will be put up for sale again?

“When we bought the Ploiesti plant, the international market was facing a shortage of production facilities. Now there are too many of them. However, we are open to every opportunity,” W.R. Timken stated.

The American group will fork out another 3.85 million dollars for the Ploiesti subsidiary this year, “but rather in human resources, instead of equipment.”

Relocation of the equipment from the Darlington plant to other Timken factories (such as the one in Ploiesti) is scheduled to begin in July-September and could last for 8-12 months.

Timken is the largest bearings producer in the United States and the third-largest player worldwide, as it operates in 29 countries. Timken sales last year totalled some 3.8 billion dollars.

laurentiu.ispir@zf.ro