Romanian investor wins in court EUR 36 mln state aid dispute with government

The investors behind a planned large-scale wool processing factory in Romania have won a court case against the government, after the Bucharest Court of Appeal annulled the decision to withdraw state aid worth RON 186 million (around EUR 36 million), according to Profit.ro.

The project, developed by Eco Partnersheep Insulation, aims to build what is described as the largest wool processing factory in Europe, focused on producing thermal and acoustic insulation materials.

The funding had initially been approved in April 2023 under a state aid scheme established by Government Decision 959/2022. The Ministry of Agriculture announced at the time that the project would receive RON 182mn to support the investment, with financing provided through the Ministry of Economy.

However, in early 2025, the Ministry of Economy revoked the state aid, alongside support granted to eight other projects selected under the same scheme.

Following the withdrawal, project developer Cristian Mercioniu sought alternative financing to keep the investment alive.

“After the cancellation of the state aid, we modified the investment plan and started looking for financiers. Currently, we are in very advanced discussions with several potential financiers, banks, and investment funds. We are optimistic and believe that we will obtain the financing as soon as possible,” Mercioniu said.

According to him, once financing is secured, the factory could become operational within 12 months.

The court’s decision marks a significant step for the project, potentially restoring access to public funding and improving its financial viability.

(Photo source: Ungureanu Vadim/Dreamstime.com)