Romanian Prime Minister Victor Ponta said at the end of last month that he had approved a “memorandum of understanding” with “one of the largest and most prestigious companies in Germany, which will open a plant in Romania,” without giving the investor’s name.
Although investor names such as that of ball bearings manufacturer Ina Schaeffler were thrown around on the market, sources close to the project say Daimler is interested in investing in Romania.
Daimler has been present on the Romanian market since 2011, when a joint venture was created between the German group and auto components manufacturer Compania Nationala Romarm (controlled by the state through the Economy Ministry), under the name Star Transmission Cugir (where Daimler has 75% of the shares).
Currently Daimler, through Star Transmission Cugir, owns two plants in Romania (in the towns of Cugir and Sebes), where the German company had over 600 employees in 2011. Star Transmission had turnover of EUR31.3 million in 2011 (up 53% on 2010) and losses of EUR790,000.
The Romanian Government was also in talks with Daimler five years ago, when the company decided to build a new plant for the manufacture of Mercedes-Benz cars in Eastern Europe. Ultimately Daimler chose Hungary over Romania.
Romania is dependent on foreign investment to finance its current account deficit and its budget deficit, as well as to roll over its external debt. But Romania’s foreign investment collapsed to close to EUR9.5 billion last year. However, in January this year foreign investment reached EUR103 million, exceeding six times the level recorded in January last year.
(English version by Daniela Stoican)