The new facility, located in Aricestii-Rahtivani, near Ploiesti City, includes a manufacturing plant as well as an aftermarket and re-manufacturing facility.
The facility currently employs 260 staff and is expected to reach 350 employees by year-end.
Romanian President Traian Basescu said the government provided a EUR28 million state aid for the construction of Lufkin’s new facility. Since 2010, Romania has granted state aid in excess of EUR450 million for projects worth over EUR2.5 billion, Basescu said at the inauguration ceremony.
The facility’s primary purpose is to manufacture Lufkin’s beam pumping units, with the ability to produce over 1,100 units per year. In addition, the facility will service and support the sale of all Lufkin products in the Eastern Hemisphere.
Approximately 90% of the production at this facility is expected to be for export to end markets in more than 20 countries, Lufkin said in a statement.
“This new facility is a critical step in our strategy to expand our geographic reach to better serve our global customers. We anticipate that the Romanian operation will serve as a strategic hub for our Eastern Hemisphere markets,” said Jay Glick, CEO and President of Lufkin Industries.
Lufkin’s investment in Romania is the largest investment in the company’s history, said Duane Butcher, US Charge D’Affairs to Romania.