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Wednesday, December 22, 2004

ARIS confirms record FDI of 3.4 billion euros

The Romanian Agency for Foreign Investors (ARIS) yesterday confirmed a record 3.4bn euros in foreign direct investments (FDI) by yearend.

ARIS also said that foreign investors in Romania have recently changed their focus, leaving behind traditional fields such as textile manufacturing and related sectors in favor of sectors in the economy that use new technology.

According to ARIS, forthcoming investments will generate over 8,900 new jobs in Romania.

After ten months this year, the National Bank of Romania (BNR) witnessed FDI inflows worth 1.88 billion euros, about 45% up on the same period a year-ago, the release added.

Under these circumstances, the Agency confirmed FDI would exceed 3.4 billion euros record by the end of this year.

The record high index occurred thanks to the completion of Petrom's privatization, the Romanian oil giant that was taken over by Austria's gas and oil group OMV for 1.5 billion euros, and to an increase in greenfield and brownfield investments.

Other privatization contracts signed this year will also contribute to a surge in the index next year.

Power companies Electrica Dobrogea and Electrica Banat, which were taken over by Italy's Enel and the sale of gas producers and distributors Distrigaz Sud and Distrigaz Nord to Gaz de France to German Ruhrgas, will add over 700 million euros to the FDI volume in 2005.

ARIS also said it would support several greenfield investment projects that will be completed in 2005-2006.

Projects announced by the Agency for this fall include the German group Tengelmann, which will invest 200 million euros in Romania, generating 3,000 new jobs and France's Montupet, whose planned 120 million euros of investments will create 2,150 new jobs.

Celestica is set to inject 100 million euros in a project requiring 1,000 employees, Saint-Gobain will invest 100 million euros and create 200 jobs, whilst Coficab have said they will invest 25 million euros and create 200 jobs.

Furthermore, Ruwel AG will invest 80 million euros, while the Italian firm Pirelli will place 40 million euros in the Cord Romania plant and another 110 million euros in a plant to produce tires.

FDI per capita will amount to 150 euros this year, double the level reported last year.

However, Romania lags behind other countries from Central and Eastern Europe, such as Croatia - 331 euros, the Czech Republic - 190 euros, Estonia - 497 euros and Hungary - 185 euros.

Posted by Iulia Rasoiu : 12/22/2004 10:12:00 am