Romania gives EUR 34 mln grants to two companies in automobile industry

Finance minister Alexandru Nazare, on August 25, handed over, at the ministry's headquarters, two financing agreements worth a total of RON 170 million (EUR 34 million) to the car parts producer DRM Draxlmaier Romania Sisteme Electrice and automobile producer Dacia. The grants were extended under the state aid scheme provided for by Government Decision (HG) 300/2024, to stimulate regional development through significant investments.

The investment projects will have a considerable social and economic impact, contributing to the creation of new jobs and the consolidation of Romania's trade balance, the Ministry of Finance said in the press release.

DRM Draxlmaier Romania Sisteme Electrice, a major global company and one of the largest employers in the automotive industry in Romania, will expand the production capacity of electric vehicle wiring harnesses in its Satu Mare facility. The project, with a value of RON 297.2 million and an approved state aid of RON 133.7 million, will create over 400 new jobs by 2030 and will contribute to regional development with RON 211 million, in the form of local and national taxes and duties.

The second approved project is for Automobile Dacia, which will get RON 37.5 million for a project to modernise the vehicle painting process, and a RON 85 million project. The company's contribution to regional development through the payment of taxes and duties will be RON 18.7 million, the ministry estimates.

The Ministry of Finance launched the state aid scheme under HG 300/2024 to stimulate Romania's regional development by supporting significant investments. Scheme 33/2024 has as its main purpose supporting projects that contribute to balancing the country's trade balance, either by reducing imports or increasing exports.

The scheme is aimed at manufacturing enterprises making initial investments in Romania, with a minimum eligible cost of RON 50 million and a maximum of RON 500 million. An essential condition is that the investment is completed within 3 years of start-up and uses new tangible and intangible assets.

The total budget of the scheme is almost RON 2.25 billion (approximately EUR 450 million), and financing agreements can be issued until December 31, 2026, with state aid payments to be made during the period 2025-2032. To date, 10 financing agreements have been signed, with a total investment value of RON 2.59 billion and an approved state aid of RON 1.146 billion.

(Photo source: Facebook/Ministerul Finantelor)