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Net investments in Romania's economy, up 14.3% in Q1, 2018

By Andra Beltz
Net investments in the Romania's economy was 15.79 billion lei in the first quarter of this year, up 14.3% over the same period in 2017, according to data published on Thursday by the National Institute of Statistics (INS).
On structural elements, during the first trimester of 2018, as opposed to the first trimester of 2018, growths were recorded in other expenditure, by 138.3 percent and in equipment (means of transportation included) by 7.7 percent, while new construction works dropped by 3.3 percent.
Thus, net investments in new constructions amounted to 6.26 billion lei, during the first three months of this year, those in equipment (means of transportation included) stood at 6.58 billion lei, and in other expenditure, 2.942 billion lei.
According to INS data, reports on the activities of the national economy show a growth of the share of net investments in agriculture, to up to 5.9 percent in the first trimester of 2018, as compared to 4.4 percent during the same period of 2017, and in other branches up to 16.5 percent, from 4 percent in the first trimester of 2018, whereas net investments oriented towards the industry recorded a drop of 2.4 percentage points, up to 32.9 percent in the first trimester of 2018.
Investments in trade and services decreased 7.4 percentage points in the first three months of 2018, up to 23 percent, and those in constructions by 4.2 percentage points, reaching 21.7 percent.
According to INS data, net investments represent expenses meant for the creation of new fixed means, for development, for modernizing and reconstructing existing ones, as well as the value of services related to the transfer of property over the fixed assets and lands that were acquired and paid for from other units or the population (notary fees, commissions, transport expenses, handling, etc.) (rbj/07.06.2018)

Romania records highest drop in construction works of EU in May

By rbj

Romania recorded in May 2017 the highest drop in construction works of the European Union (EU), namely minus 16.7 pct compared to May 2016, according to data released on Wednesday by the European Statistical Office (Eurostat).

In the Eurozone, construction works have increased by 2.6 pct in May 2017 compared to the same month of the last year, and at EU level, the construction works have recorded a boost of 2.5 pct. Eurostat mentions that only three of the EU member states, Romania at the top, have recorded a y-o-y decline in construction works in May.

Moreover, in May 2017 compared to April 2017, Romania has reported a drop in construction works of minus 1.3 pct, higher than the drop of 1.1 pct recorded in the EU or the 0.7 pct decline recorded in the Eurozone. Among the EU member states, the highest monthly decline in construction works was recorded by Slovenia (-10.6 pct), Sweden (-7.1 pct) and Slovakia (-4.9 pct). At the opposite end, the largest monthly increases in construction works were recorded in Hungary - 7.6 pct, Bulgaria 3.6 pct and Italy - 2.7 pct.

According to the data previously presented by the National Institute of Statistics (INS), the volume of construction works declined y-o-y, both as gross series by 16.7 pct and as series adjusted by the number of working days and seasonality by 13.1 pct, and compared to April 2017 it dropped by 10.6 pct as gross series and by 1.3 pct as series adjusted according to the number of working days and seasonality. (rbj/19.07.2017)

Arctic S.A. invests 100 million euros in a new factory in Romania

By rbj

The domestic appliance manufacturer Arctic S.A., a company of the Turkish group Arçelik, which has a refrigerator factory in Romania, at Gaesti, will construct a factory of washing machines in Ulmi (Dâmboviţa).

The investment in the new plant amounts to 471 million lei (103 million euros). The Turkish group Arçelik will allocate 70 million euros of his profit. The first announcement of the new factory it did Alexandru Oprea, Dambovita County Council on March 23.

"For the group Arçelik, the investments in Romania have always been important and this new investment will allow us to transform Romania into a production hub for the whole of Europe. The new factory of washing machines has the potential to transform Romania into a global force in consumer electronics industry, as it will increase the production capacity of Arctic in Romania, "said Hakan Bulgurlu, CEO of Arçelik.

Nihat Bayiz, CEO of Arctic said that until 2024, the new plant will create 480 jobs in Dambovita county, with plans for further development. "In addition to creating the new jobs in a region with one of the highest rates of unemployment in Romania, this investment will help improve the quality of life locally, through the professional development of the workforce, and attract new investors in the area, "estimate Bayiz.

The new factory Arctic will be the first production unit of the group Arçelik digital concept built to the standards of Industry 4.0. This concept involves placing Cyber Physical Systems including intelligent machines (devices, equipment, fleets and interconnected networks) and systems analysis (which combines physical power systems analysis, predictive algorithms, automation and advanced expertise).

"The new factory will integrate cutting-edge technologies, such as wireless communication production lines with those of other countries in the group Arçelik, and intelligent machines," added Nihat Bayiz.

Arctic had a turnover in Romania of 1.6 billion lei in 2015, with over 3,000 employees. Presence in Romania for 47 years, the company has a factory of refrigerators in Gaesti (Dâmboviţa photo), and 82% of total production is exported Arctic in over 80 countries.

Since 2002, Arçelik Group has invested over 130 million factory in Gaesti, which turned it into the largest production facility in continental Europe. The latest project is the investment of 24 million euros made in 2013 to expand its production capacity.

Arçelik is present in 135 countries and manages 11 brands (Arçelik, Beko, Grundig, Dawlance, Defy, Arctic Blomberg Elektrabregenz, Leisure, Flavel and Altus), with sales and marketing offices in 31 countries. Currently, the Group has about 30,000 employees worldwide and 18 production facilities in Turkey, Russia, Romania, China, South Africa, Thailand and Pakistan. In 2015, Arçelik achieved turnover 5.2 billion dollars, the highest turnover in its history, international sales accounting for about 60% of the total. The group owns eleven dedicated centers in 4 countries, accumulating more than 1,000 employees.(rbj/1.04.2017)

Teraplast S.A. Bistrita-Nasaud acquires 50% stake of the Dapaco SRL, the second producer of metallic sheet tiles in Romania

By rbj

Teraplast, one of the biggest local industrial groups, concluded on 01.03.3017 an agreement for the purchase of the 50% of the stake held by the shareholders of Depaco SRL, the second player on the metallic sheet tiles market with the brand Wetterbest. The acquisition is a strategic one for Teraplast Group in the context in which TeraSteel subsidiary is the market leader for the galvanized steel structures market, and the new products which will enter the portfolio will be complementary.

The purchase of the stake is conditioned by the approval of the transaction by the General Meeting of Shareholders of Teraplast S and by the obtaining of the favorable approval of the Competition Council. We specify that the amount at which the 50% stake of the company Depaco SRL is purchased does not exceed the threshold of 10% of the turnover of the latest annual financial statements of Teraplast SA and it will be paid both from internal sources and credit institutions financing.

The company Depaco was established in 1999 and it is the second producer of metallic sheet tiles in Romania. Currently the production process at the Depaco factory from Baicoi is conducted on more than 40 automated lines: for metallic sheet tiles with different profiles, for corrugated metallic sheet tiles, for the drainage system, for seamed metallic sheet tiles and for many other accessories. In 2016 the company realized a turnover of RON 130 million, EBITDA of RON 15.76 million and a net profit of In anul 2016 firma a avut o cifra de afaceri de RON 130 milioane, EBITDA de RON 15.76 milioane si un profit net de RON 11 million.

Following this transaction, Teraplast SA will purchase the 50% stake of Depaco SRL (which owns 51% of the company Cortina WTB SRL) and the founding shareholder, Mr. Dragos Irimescu will remain an important shareholder of the company. Depaco operations will be managed by Mr. Valeriu Irimescu as Chief Executive Officer.

Teraplast Group is developing an annual turnover of over 400 million LEI. The products portfolio of the Group is structured in six business lines: Installations & Decorations, Windows profiles, Compounds, Sandwich panels, Galvanized profiles and PVC windows and doors, and is on top positions on most of the markets on which is present. The parent company Teraplast is market leader in exterior sewage drains and compound and on the second position in interior sewage. The subsidiary, TeraSteel, is the second player on sandwich panels market and the leader of the galvanized steel structures market. (rbj/04.03.2017)

Contact
The Romanian Business Journal
Constantin Radut
Editor in Chief
031726 Bucharest, Romania

+40 725 511 887 office.rbjournal@gmail.com www.rbj.ucoz.ro
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