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September 29, 2022

German investors keep investing interest in Romania

The majority of German investors operating in Romania would choose this country again for a new investment, show the results of a questionnaire of circumstance conducted by the Romanian-German Chamber of Commerce and Industry (CCIRG), Agerpres informs. At the height of the economic crisis, fifty-four member companies answered questions about the general economic situation in Romania, about the circumstances of their company, prospects of their sector, conditions offered by this country to investors or the adoption of the euro. The circumstance report depicts a general image of the experiences and expectations of German companies present in Romania. Despite the difficult conditions, a majority of respondents (88 per cent) would still choose Romania to invest today, which can only tell that their commitment has been successful. The areas indicated as being in most need for economic and political action are infrastructure, corruption, legislation and the legal system, services, professional training and access to European funds. Companies answering the questionnaire say their situation at the beginning of the year was the same or worse than in 2008, according to CCIRG.

Foreign investors leave Poland for Romania in search for lower wages

Foreign investors are leaving Poland and are moving to Romania in search for cheaper labor force, the Polish daily ‘Rzeczpospolita’ informs, being quoted by HotNews. The Takata-Petri car components producer is one of the companies that will close down its plants in Poland and will relocate them to Romania. By August the company is set to sack 500 employees. Takata-Petri is one of the largest producers of car components in Romania and has two plants in Arad and Sibiu. The company has around 5,000 employees in the country and produces airbags, steering wheels and seatbelts. The Takata Corporation has 46 plants in 16 countries.

Moreover, SEWS Polska, owned by Japan’s Sumitomo, will also close down in order to relocate to Romania.

The Polish daily informs that four other foreign investors, mainly from the auto sector, consider relocating their production out of Poland. Moreover, several other companies that planned to build production plants in Poland consider canceling these projects. One of the reasons invoked is the growth of the wages, the latter having grown by 10-12 per cent in 2008 alone. Another threat perceived by the potential investors consists of the possible taxes’ growth.

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