More large Romanian manufacturers halt production amid Covid-19 restrictions

Furniture producer Aramis Baia Mare, Romania’s biggest locally-owned exporter, German car parts producer Dräxlmaier, which employs 15,000 at its local factories, and gearbox producer Star Assembly, the biggest car parts manufacturer in Romania by turnover, have all announced that they would suspend operations.

They follow the two major car producers Dacia and Ford, which have already announced that they would stop production at least until April 5.

Most of the manufacturing factories set April 5 as a first possible date for resuming activity, but actual developments will depend on the dynamics of the Covid-19 outbreak.

Aramis Baia Mare, the largest Romanian manufacturer and exporter of furniture, will stop its activity effective March 30 and send all of its 5,000 employees into technical unemployment. Aramis is a supplier for Swedish furniture retailer Ikea, among others. Ikea too has closed some of its stores, including the two units in Romania.

German group Dräxlmaier, which employs about 15,000 in Romania, will suspend activity at the local factories in Satu Mare, Piteşti, Timişoara, Hunedoara and Braşov, largely due to measures related to preventing the spread of Covid-19 and due to weak demand.

Star Assembly, the local division of German group Daimler, the producer of Mercedes-Benz cars, stopped production of gearboxes at its local plant in Sebes last week. The measure was adopted as Daimler also stopped production of cars.

German car parts producer Leoni also announced it would close some of its factories in Europe, including some units in Romania, where the company has 10,000 employees.

(Photo: Ekkaluck Sangkla | Dreamstime.com)