Last year, when many local plants either closed or relocated to cheaper countries, the number of employees shrank by almost 35,000 and about 750 companies disappeared from statistics altogether. The plant closings will actually show in the 2021 figures, because some businesses went insolvent or bankrupt, while others decided to leave last year.
Romania used to be a major manufacturing destination for major mass market and luxury brands even before the ‘90s. Asian markets have risen in the past decade, relying on lower wages of less than EUR100 per month. Under the circumstances, plants in Romania keep closing.
The plants of Calzedonia (one), Rieker (two), Alison Hayes (one of two), Ara Shoes (one of two), RHM Parts (one), Melania (one) are but a few examples in a long line of closings, a trend that has been more visible in the last three or four years.
Some analysts say this is good for Romania, because it means the country is shifting from toll manufacturing to high added value investments, such as manufacture of home appliances and cars. However, the plant closings mean loss of jobs, as well as a loss for the economy.
(English version by Loredana Fratila-Cristescu)