Seven companies in Romania, on September 11, signed the agreements for receiving RON 194 million (EUR 41 mln) worth of state grants. They will use the funds to develop investment projects with a total value of RON  621 mln (EUR 131 mln), Profit.ro reported.

The seven companies will increase their production capacities or create new ones, according to the investment programs submitted to the Government.

Detergenti SA, a company owned by Procter & Gamble, has received RON 29 mln to develop a new detergent factory for the European market, Romanian tractor producer Irum Reghin will get RON 9.8 million to increase tractor production, and Romaqua Group, the owner of the Borsec mineral water brand, will get RON 28 million to increase its bottling capacity for still water.

The biggest grants will go to Hirschmann Romania (RON 58 mln), for expanding the production capacity of cables used in the automotive industry, and MPO Prodivers Rezistent (RON 49 mln), for increasing the production capacity of the parts stamped by purchasing equipment.

The seven projects approved by the Government will create 778 new jobs and will contribute RON 212 mln to the regional development, by additional taxes and taxes paid. The agreements were signed by finance minister Eugen Teodorovici.

As of September 10, 2019, the Government had extended grants for 28 other investment projects, based on the scheme established under Government decision 807/2014. The investment projects have a total value of over RON 2.96 billion (over EUR 600 mln), out of which the grants accounted for RON 1.1 bln (EUR 240 mln). These investment projects will generate a total of 4,455 new jobs and a contribution to the regional development, totaling RON 1.21 bln (EUR 260 mln).

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editor@romania-insider.com