Why Procter & Gamble chose Ploiesti for its plant

The shortlist of locations for the 100 million-dollar P&G plant included Poland, Turkey and Ukraine, countries, which, as of 2010, will be among the markets supplied by the chosen location in Ploiesti.

“Up until two years ago, Romania was not on Procter & Gamble’s radar for such investments (greenfield projects of regional importance),” says Ramona Brad, external relations group leader with Procter & Gamble Romania. However, the prospect of Romania’s entry into the European Union changed the way the American company viewed the market. In 2006, P&G opened a regional services centre in Bucharest, which has 150 employees at present. It all started when Jose Medran, head of P&G Romania, proposed that the Romanian market should also be looked into for this project. The company has recently announced an over 100 million-dollar investment in building a hair care products plant on a 25-hectare plot in the Industrial Park in Ploiesti. “One of the arguments in favour of Romania was its status as an EU member country. We have also considered possibilities of sealing partnerships with the Romanian state,” says Ramona Brad. The company is holding talks with the Romanian authorities for state-granted incentives for the 100 million-dollar investment. Brad also says P&G could sign a partnership with the Romanian state for personnel training programmes. “It is very fortunate that the Ploiesti area has been involved in the petrochemical industry in the past, and we are hoping that those who left to work in other areas of Romania or abroad, will come back,” Brad adds. The plant will be built on a plot rented out by local authorities for over 45 years, for which P&G paid around 9 million euros, according to market sources. “In Romania, we chose the industrial park because it offers several facilities, mainly in terms of its management,” specified the P&G representative.