German producer looks at Romania, but goes to Eastern Poland for new factory

German drive solutions supplier ABM Greiffenberger has looked at Romania for a new factory, but has chosen the city of Lublin, in Eastern Poland instead. “Romania was one of the countries on our initial list, based on which we made out top 10,” Robert Lackermeier, the CEO of the German company told Romania-Insider.com. But Romania did not make it to the short list, and was not even visited before making the decision. Other countries like the Czech Republic and Slovakia were considered. The German company chose to relocate some of its production activities from Germany and to invest several millions of euros in its new production facility in the special economic zone at Lublin, one of Poland's many special economic zones. ABM Greiffenberger has a staff of 125 at its factory in Lublin, and plans to turn it into a technological competence center. There the authorities offer ready – made production halls, with all infrastructure in place, and the city, a well known university center in Eastern Poland, can supply enough staff. Lublin was also chosen for its position, which allows the German company to turn it into an export hub, as well as for consolidating the company's logistics supply chain. Despite the recent political setbacks, the region was very important for the German producer, as it opens the doors to Eastern Europe, to Ukraine and to Russia, said the CEO. Poland's 25 special economic zones, managed by a state agency, come with tax incentives, the possibility of state aid, ready – made production units, and offices spaces in technological parks. This is how Poland manages to attract foreign investors, among others. For example in the special economic zone at Mielec, 66 percent of the companies are foreign investors. ABM Greiffenberger has 700 employees, three factories in Germany, one in China, and one in Poland, and a yearly sales level of EUR 100 million. It manufactures drive solutions for machinery, equipment and mobile devices. Corina Chirileasa, corina@romania-insider.com