“It’s important for us to have cheaper labour force, but we are more concerned about employee motivation than the low costs,” stated Ferdinand Zilcher, managing director for Romania with Druxlmaier.
Romanian employees are at present involved in an increasing number of international projects. Around 300 Romanians were sent by the German group to Mexico to take part in the setting up of a new production facility.
“After three years in Mexico, they will return to Romania or they can go to other countries Druxlmaier has production facilities in, for an expertise exchange,” explained Zilcher.
The group chose to manufacture in Romania primarily owing to the labour force skill and prices, as well as to the small distance to the headquarters in Germany.
“Romania’s joining the EU doesn’t bring us many advantages, given the nature of our business. One of the advantages would be the simplification of administrative processes at the customs,” mentioned Zilcher.
The German group last year derived turnover worth 116 million euros (421.2 million RON), up more than 10% from the previous year.
“The turnover growth pace we posted in Romania last year was slower that the one we’d registered in the previous period. Growth generated by the production of cable systems was partially wiped out by a drop in turnover on the segment of car upholstery,” said Zilcher.
This year, investments by Druxlmaier are meant to expand the plant the group owns in Codlea (Brasov county), after a new building was erected last year for administrative and research activities in the location in Pitesti, and the plant of Hunedoara was expanded.
Druxlmaier’s investments in its 5 production facilities in Romania have reached 180 million euros thus far, and the number of Romanian employees exceeds 17,200, more than half of the group’s number of employees globally, according to Ferdinand Zilcher.
Druxlmaier Group produces modern dashboard systems, interior parts and integrated functional systems for customers such as BMW, Mercedes-Benz, Volkswagen, Audi, Porsche, Jaguar, Lexus, General Motors or Toyota.
The entire production of the German group in Romania is sent abroad, for assembling in the plants of various carmakers.
Druxlmaier group started operating in Romania in 1993, when it acquired the Pitesti-based plant manufacturing cable systems for dashboard systems. Another four production facilities were subsequently bought, in Codlea, Satu Mare, Timisoara and Hunedoara.