A new plant will therefore be taken down and replaced by a DIY store, something Dedeman has done before, in Bacau (Mobila Elbac plant) and Timisoara (Dermatina).
Dedeman, like Kaufland and Lidl, has been buying former or current plant sites because of their good location inside the cities.
A decision on the deal is to be made on March 29, when the extraordinary general meeting of the Industria Iutei shareholders is held.
Industria Iutei intends to relocate, according to publicly available information.
Industria Iutei was established in 1928 as a manufacturer of twine, bags, cloth and rugs made out of jute or a mix of jute and flax and hemp, as well as unwoven products. It underwent a MEBO-type privatization in 1995.
It first tried to sell the plant in 2008, asking EUR45 million at the time and said it was in talks with several foreign companies. The crisis forced it to postpone the sale and the price is now down to 14% of what it first asked.
(English version by Loredana Fratila-Cristescu)