Romanian business news August 2010
Romania, behind Bulgaria and most of Eastern Europe in Newsweek’s top of 100 countries in the world
Romania ranks 39th in the top of 100 countries in the world published by US magazine Newsweek. The ranking takes into account education, health, quality of life, economic dynamism, and political environments in 100 countries in the world. Romania came one place behind Bulgaria and also behind most of the Eastern European countries.
EximBank receives authorization to set up insurer CARE, expects EUR 471.000 of premiums
Romanian state-owned bank EximBank has received the authorization for its insurance company CARE in Romania, which will offer insurance for commercial loans on short term, as well as insurance for guarantees. The company expects a gross subscribed premiums volume of RON 2 million (around EUR 471,000) in the first year of activity.
BCR keeps GDP drop forecast at 3%, expects better fourth quarter
Romania’s GDP could turn negative in real terms in the third quarter of the year due to the public spending cuts and the VAT increase, writes a report issued by BCR. However, the last quarter of the year could bring an improvement, but uncertainties are still high. BCR has kept its economic prognosis to a 3 percent DGP drop for this year.
Romstrade lands additional EUR 1.25 mln contract for Bucharest ring road works
Construction company Romstrade, owned by Romanian businessman Nelu Iordache, has landed a EUR 1.25 million additional contracts for works on the Bucharest North ring road. The contract was awarded for design and execution works on the segment 1A-DN2 of the north ring road.
China TownRomania starts works on the second phase
Works on the second stage of the ChinaTownRomania real estate project, which should reach a value of EUR 50 million, will start on August 17. This phase of works should be finalized in 2013, according to the Chinese- Romanian Chamber of Commerce.
Romanian inflation in July, highest in EU, exceeds Greece and Hungary’s
Romania’s inflation rate was the highest in the European Union in July this year, compared to the same month of last year, going up from the third place in June. The country’s inflation rate was of 7.1 percent, while the average inflation in the EU was of 2.1 percent. Romania’s inflation rate was of 4.3 percent in June, while the average in the EU was of 1.9 percent then.
GFK;Technical consumer goods make EUR 266 mln market, sales decrease slows down
The Romanian technical consumer goods market has slowed down its decrease in the second quarter of the year, with sales only 15 percent lower compared to the same period of last year, found a monitoring by GfK. However, the value of this market segment was slightly lower compared to the first quarter and the negative tendency could continue, if we take into account the VAT increase from July 1st.
Dinu Patriciu’s retail business Mercadia buys discounter MiniMax
Mercadia Holland, a company controlled by Romanian businessman Dinu Patriciu, has taken over discount retailer MiniMAX DISCOUNT, in a deal whose value was not revealed. The 31-unit network used to be controlled by Austrian Real4You and two individuals, Rainer Exel and Andreas Kampf.
Ford to manufacture new car in Romania next year, hire more staff
Car maker Ford will start production of a new car in its factory in Romania next year. It will be a small-size car which is not yet in Ford’s portfolio, according to John Fleming, head of global manufacturing and labor affairs. 150,000 units of the new car will be produced each year, according to Fleming. Production should start towards September next year.
KRKA sells EUR 19,9 million of pharmaceuticals in Romania
Slovenian pharmaceutical producer Krka has obtained one of the highest sales increases in Romania in the first six months of the year, compared to other markets where the group operates. The company posted EUR 19.9 million, up 30 percent compared to the same period of last year. This came primarily from products for human consumption, including both products established for a number of years such as Bilobil (ginkgo biloba), among others.
Romania is Krka’s second largest market, after Croatia, in terms of sales volumes. The company witnessed a 34 percent increase in the sale of prescription pharmaceuticals in Romania during this interval. The increase in sales for self-medicated products was of 26 percent in Romania, which is among the top markets in this respect too. “Krka’s leading self-medication products are Bilobil, Pikovit, Herbion, Septolete and Duovit, to which the majority of advertising and other promotional activities are dedicated,” according to the company
EBRD offers Alro USD 180 million syndicated refinancing package
The European Bank for Reconstruction and Development (EBRD) has offered a USD 180 million syndicated refinancing package to aluminium producer Alro. The EBRD loan will refinance Alro’s existing debt, consolidating and restructuring it on a longer term basis
Norway, Iceland, Lichtenstein to give EUR 1.8 bln grants to CEE projects
Norway, Iceland and Lichtenstein (the European Economic Area – EEA) have signed an agreement to supply EUR 1.8 billion of non-reimbursable financing to 15 states in Central and Eastern Europe which are part of the EU, Romania included. The program will cover the 2009-2014 period and the financing will come from two programs – the EEA Financial Mechanism and the Norwegian Cooperation Program.
Star Storage makes EUR 7.8 mln in six months from data storage
Star Storage, a company which specializes in data storage and information management, grew its turnover by 51 percent in the first half of the year, to EUR 7.8 million, compared to the first six months of last year. The company hopes to achieve an overall increase of 30 percent for the entire year, reaching EUR 18 million in turnover.
New Den Braven shareholders to invest in increasing Romanian production, double sales in three years
Den Braven Group, which has been recently taken over by financial companies Egeria and Wagram in an EUR 1 billion deal, will invest in expanding production capacities in Romania. The local subsidiary expects to reach a turnover of EUR 60 million within the following three year
BelRom shareholders built shopping center on Electroputere Craiova land
The shareholders of real estate developer BelRom, Kris Henri Remi Carton and Steven Van Den Bossche have bought land on the premises of the Electroputere Craiova factory and plan to build a shopping center on some of the area. The mall will be called ElectroputereShopping Center and will require investments of EUR 45 million.
Hungarian state printing company expands in Romania with acquisition of local company
The Hungarian state printing company Allami Nyomda has bought 50 percent of local GPV Mail Services from Hungarian company Díjbeszed. GPV Mail Services is also offering printing services. The value of the deal was estimated between EUR 1.5 million and EUR 2.2 million.
Update: H&M store in AFIPalace Cotroceni to be opened in March next year
The owner of CotroceniPark mall in Bucharest, AFI Europe, has signed the leasing contract with fashion retailer H&M, which should open the first store in Romania within CotroceniPark in spring next year.
Bucharest, August 2010
Triglav Carpati business club
Majda Grgič