Romania stimulates private investments with EUR 77 mln grants

Romania's government on December 10 granted RON 358.6 million (EUR 77 million) state aid to five companies to help them carry investment projects with major economic impact worth a total of RON 1 billion (EUR 215 million). The recipients of the new grants are part of multinational groups and four of them operate in the automotive industry. This comes after another package of RON 491 million (EUR 105 mln) grants was extended in October mainly to local companies in a variety of sectors. The companies that received grants in December promised that their projects would generate 1,272 new jobs. In addition, their projects will contribute RON 418 million to the regional developments where the new facilities will be located, by the taxes paid. Renault's local car plant Dacia received the largest grant: RON 116 million (EUR 25 mln) that will be used to increase the production capacity. According to Dacia's director of public affairs, Gabriel Sicoe, the investment will lead to a production of 406,000 vehicles per year (its output hit 280,973 in January-October 2018) and is part of a broader investment program of EUR 3 billion over the 20-year period after plant's privatisation (in 1999). The other recipients of state aid are Sogefi Suspensions Eastern Europe (RON 104 million for setting up a new plant), Martur Automotive Seating and Interiors (RON 41.3 million to expand the unit's capacity in order to manufacture car seat components and assembled car seats), and Swoboda Sibiu (RON 17 million for the expansion of production capacity for automotive sensors). Omnia Europe is the only recipient outside the automotive sector, and it has received RON 80.5 million for a greenfield investment for the production of starch, maltodextrin, gluten, fodder gluten and corn germs. Investments deterred by uncertainty and regulations in Romania: EIB survey editor@romania-insider.com (photo source: Gov.ro)