Faurecia, one of the world’s largest automotive equipment suppliers, expands its presence in Romania with a new facility in Arges County at Căteasca. Currently, the company operates five plants in Romania at Talmaciu (Seating), Craiova (Clean Mobility), Mioveni (Interiors), Ramnicu Valcea (Seating) and the new plant from Arges (Interiors).
The initial investment in this new plant amounted EUR 8 million, in both plant construction and the most modern technologies used in the production process. Within a total surface of 14.000 square meters, Faurecia employees produce high quality components for Instrument Panel, Door Panels and Central Console using the latest technology of cutting, sewing and covering equipment. Arges plant supplies some of the most important cars manufacturers in the world such as Jaguar Land-Rover, Fiat-Chrysler, Volvo, Ford, Peugeot-Citroen, and Renault. The equipment produced by the employees from Arges plant endows premium models such as Range Rover Velar and the new PSA flagship DS7 that were presented at the Geneva Motor Show 2017 Edition.
“We have gathered here today to celebrate a new milestone achievement for Faurecia in Romania, and at global level. The facility we are officially inaugurating today is one of the most modern of our Group in terms of both technologies and working conditions for our employees. At this plant, currently, we employ 370 production operators, technical specialists, team coordinators and managers. We should reach 900 employees by 2021, generating over 500 new jobs”, stated Jean-Michel Renaudie, Executive Vice President, Faurecia Interior Systems.
The host of the opening ceremony of the new plant was Tiberiu Stefan, Plant Manager. Representing the authorities, Cristian Dima, Secretary of State in the Ministry for Business Environment, Commerce and Entrepreneurship, spoke, congratulating the investor Faurecia and wishing it success with the new project. “I believe that investor Faurecia, one of the worldwide and European leaders, one of the first 3 or 4 investors in Romania, demonstrates by the 14 years of active presence on the Romanian market what stability means, and we hope in the reverse. I am saying this because we also aim, by the government program, to gather in an economic code all the legislation that is specific to the entrepreneurship environment” stated Cristian Dima at the opening ceremony.
Being asked what he can say about the profitability of the new plant, the break-even point, Christophe Ancey, SER Vice President, stated: “This facility is a low profitable company at this stage, but improving. We expect to cover most of our investment within 4 to 5 years. This is our target”. Jean-Michel Renaudie further explained that the investment will be deducted from the production assessment performed for the customers of the new plant. “We invest and we forecast the production of our customers”, he stated.
Faurecia operates in Romania since 2003 and has over 3.300 employees. Group’s local plants generated total sales of EUR 219.2 million in 2016, of which the Interiors Division generated approx. 55%. The Faurecia Officials also stated: “We are profitable in Romania. Because we are profitable, we can invest more”, but they mentioned that the rule of the group is to invest in the areas where it has profit. “Our current vision for 2021 is above 60 million euros at this stage”, added Christophe Ancey.