The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.

The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia.
The emerging markets in CE, SE and Eastern Europe include Romania, Poland, Hungary, Turkey, Serbia, Lithuania.

Wednesday, 22 February 2012

Major profits in Romanian companies in 2011 and investment plans for 2012

  • Romanian lender BRD Groupe Societe Generale posted a net profit of EUR 109.7 million in 2011
  • Parcel service company UPS Romania’s exports volume increased by 15 percent in the first nine months of 2011, compared to the same period in 2010
  • Construction subcontractor Octagon posted a turnover of EUR 12.5 million last year, when it signed EUR 3 million contracts in Romania
  • Romanian IT&C retailer Flanco aims for a turnover of EUR 140 million this year, after announcing EUR 110 million sales for last year. The 77-store chain plans to add more units this year, with an investment budget of EUR 3.5 million
  • State-owned energy transport company Transelectrica posted a preliminary net profit of EUR 21.2 million in 2011, nearly 10 times higher than the 2010 results
  • Fertilizer producer Azomures Targu Mures reported a preliminary net profit of EUR 81 million in 2011, more than double the previous year, when the company had a net profit of EUR 36 million
  • Telecom services provider GTS Central Europe (GTS) saw an improvement in its revenues in 2011, to EUR 396 million, an increase of 2 percent compared to the year before
  • Building materials manufacturer Duraziv, posted a turnover of EUR 18 million in 2011, up 34 percent compared to the previous year, when the company posted a turnover of EUR 13.5 million
  • Romanian aluminum producer Alro made a EUR 52.9 million profit in 2011, up from EUR 37.9 million the year before, due to favorable market conditions in the first nine months of the year, and despite a drop in revenues caused by lower aluminum prices and higher electricity costs in the last three months of the year. The producer added EUR 100 million to its turnover last year, reaching EUR 528 million
  • online ticket booking company posted a turnover of over EUR 15 million in 2011, up three-fold over the previous year
  • U.S. media group Central European Media Enterprises (CME), which owns Pro TV in Romania, posted 17% higher revenue at $864.8 million for 2011
  • Romanian IT solutions integrator Novensys posted turnover of EUR 28 million in 2011, up 40% compared with the previous year
  • Romanian lending broker KIWI Finance announced that it has switched to profit in 2011, after three consecutive years of loss, while turnover jumped 140% to EUR 1.38 million
  • French group Lafarge on Friday reported a 4% increase in its Romanian sales for 2011, helped by an increase in the amount of industrial and infrastructure projects
  • Biofarm was the most profitable pharmaceuticals company on the Bucharest stock exchange last year, with a net profit margin of 15.5%
  • Comfert Bacau, a top-ten fertilizers and pesticides distributor, had a turnover of almost EUR 90 million in 2011
  • Garanti Group Romania reported a consolidated net profit of EUR 8.3 million in 2011
  • Romanian industrial equipment maker Comelf Bistrita reported a net profit of 77% higher than a year earlier
  • Romanian farming machinery producer Mecanica Ceahlau reported a net profit over threefold higher in 2011 compared to 2010
  • Construction company Transilvania Constructii said its net profit rose over fivefold on the year to in 2011, boosted by a 21% increase in sales
  • Romanian car parts maker Compa Sibiu posted a net profit of EUR 3.95 million for 2011, up 81% from the previous year
  • Aluminum systems maker Alumil Rom Industry Bucuresti posted a 71% year-on-year increase in its 2011 net profit
  •  Romania’s TMK-Artrom Slatina, controlled by Russian steel pipe maker TMK, swung to a net profit of EUR 16 million in 2011, from a loss of roughly EUR 2.5 million a year earlier
Sources: ZF English, Romanian Business Insider 

Monday, 20 February 2012

Investments in Automotive sector: Romania, Poland, Bulgaria

1. Romania
  • In January 2012, Johnson Controls opened a production facility of automotive chairs in Craiova, following investments estimated at some ten million EUR.
  • In 2011, Johnson Controls acquired the auto division of the Romanian manufacturer of polyurethane foam for the automotive industry Spumotim. The transaction includes the company’s headquarters and plant in Timisoara, as well as its plant in Pitesti.
  • In November 2011, Delphi Automotive finalised an investment of over 155 million EUR in its plant in Miroslava, Iasi county.
  • International Automotive Components Group (IAC Group) announced at the beginning of 2011 investments of 58 million EUR to build a new greenfield manufacturing facility in Bals. The state-of-the-art facility will produce instrument panels, door panels, headliners and various other interior trim components to support the Ford’s production in Romania.
  • The German Group Röchling invests over nine million EUR in a plant of plastic automotive components in Pitesti.
  • The German producer of auto components Continental invests 35 million EUR in Sibiu in order to increase its production facilities.
  • The German automotive components producer Bosch will invest 77 million EUR in a production facility in Jucu, Cluj county.
  • The German Group Draxlmaier plans to invest 30 million EUR, during the period 2012 – 2013, in order to expand the production of automotive electrical wiring in its plant in Satu Mare. The investment will create some 1,000 jobs. So far, the German Group has invested in Romania some 200 million EUR.
  • Honeywell intends to build in Ploiesti a brake pad plant, fully equipped with the Hot Press latest technology. 
2. Poland
  • In 2012, the automotive sector is expected to be the industry in Poland which receives the largest amount of foreign investment. In mid-January 2012, the Polish Information and Foreign Investment Agency was processing 29 automotive investments worth a total of over 1.9 billion EUR.
  • Faurecia completed in January 2012 the construction of its second plastic car components plant in Gorzow Wielkopolski, Poland. By the end of 2012, Faurecia aims to create at least 400 new jobs at the Polish plant. The new production facility has a total surface of 17,600 sqm. The plant produces plastic interior parts for Volkswagen and Mercedes-Benz models.
  • The plastic components manufacturer Wezi-Tec will invest over four million EUR in order to expand its plant in Legnica, Poland.
  • In 2011, the US company Pittsburgh Glass Works announced plans to invest some 250 million zł in the construction of a windshield factory in Poland.
  • In 2011, the South Korean auto parts producer Mando Corperation, announced plans to build a factory in Poland with investments of some 400 million zł. This project will lead to the creation of 300 jobs.
3. Bulgaria
  • The total initial investment made by Great Wall Motor and Litex Motors in the production facility in Lovech, Bulgaria is of some 97 million EUR, potentially reaching 300 million EUR if the project is successful.
  • Yazaki Corporation will build a plant in Sliven, Bulgaria. The new plant is expected to be completed by June 2012. The company estimates an annual production in the new plant of some 4,000 wiring systems for the Ford vehicles. So far, Yazaki invested in Bulgaria some 30 million EUR. 
  • In February 2011, the Turkish company Sisecam launched its 5th facility in Bulgaria - a factory for automobile glass located in Targovishte, following investments of 25 million USD. The factory produces automatic and non-automatic side windows and heated back windows.

Czech Republic auto production up by 11.49% compared to 2010

  • The auto production in the Czech Republic recorded 1,220,769 auto vehicles in 2011, up by 11.49% compared to 2010.
  • The Czech production of cars and LCVs increased by 11.44% in 2011 compared to 2010.
  • The production of buses in the Czech Republic in 2011 increased by 31.32% compared to the previous year.
  • The production of motorcycles over 50 ccm in the Czech Republic recorded a y/y increase by 52.39% in 2011.
  • The Czech production of trailers recorded the following y/y increases in 2011:
    • trailers: +9.67%
    • semitrailers: +42.34%
    • small trailers: +37.77%.
  • At the beginning of February 2012, Skoda produced its 14 millionth car - a Superb 2.0 TDI of the Laurin & Klement special edition - at its Kvasiny plant in the Czech Republic.
  • Skoda produced 673,127 cars and LCVs in the Czech Republic in 2011, up by 17% compared to 2010.
  • In January 2012, the mass production of the new generation of the model Hyundai i30 was launched at the Hyundai plant in Nošovice, the Czech Republic.
  • In 2011, Hyundai produced 251,146 auto vehicles in its Czech manufacturing plant in Nošovice, up by 25% compared to 2010.
  • In 2011, Hyundai produced in the Czech Republic some 107,000 units of the Hyundai i30 model, including combi version Hyundai i30 cw and some 70,000 units of the Hyundai ix35 model.
  • Toyota Peugeot Citroën Automobile (TPCA) produced 270,705 auto vehicles in the Czech Republic in 2011. The TPCA Czech company recorded a turnover of 164 million EUR in 2011. The company exports 99% of its production.

Friday, 17 February 2012

Production of auto vehicles and auto components in Romania

  • The production of auto vehicles in Romania in 2011 registered 335,232 units, out of which 310,243 passenger cars and 24,989 commercial vehicles.
  • The production of commercial vehicles in Romania in 2011 was split as follows:
    • 24,924 vehicles under 3.5t GVW
    • one vehicle of 16 - 18 t GVW
    • 64 vehicles over 18t GVW.
  • The production of vehicles over 18t GVW in Romania recorded an increase by 16.4% in 2011 compared to 2010.
  • At present, Dacia – Renault produces in its plant in Mioveni five models of auto vehicles: Logan, Logan MCV, Logan Van, Logan Pick-Up and Sandero with its Stepway version, available in 13 equipment versions and two limited series for the Sandero range.
  • The manufacture frequency of the Dacia – Renault factory in Romania is of 1,389 vehicles per day.
  • In October 2011, Dacia - Renault marked the manufacture of 1,500,000 auto vehicles on its X90 platform in Mioveni.
  • Ford produced in its plant in Craiova over 5,700 Transit Connect commercial vehicles in the first eight months of 2011, up by 20% compared to the similar period of the previous year. The Ford production was integrally exported.
  • Ford Romania estimates that it will produce 60,000 B-Max auto vehicles in 2012 and 100,000 – 150,000 auto vehicles in 2013.
  • The Romanian producer of auto spare parts and components UAMT Oradea recorded a turnover of some 20 million EUR in 2011, up by approx. 47% compared to 2010.
  • The Romanian producer of automotive batteries Rombat recorded a turnover of 52 million EUR in the first nine months of 2011, up by 19.8% compared to the same period in 2010. In the first nine months of 2011, the company produced over 1.5 million batteries.
  • Johnson Controls has nine production units in Romania and an annual business of over 200 million EUR.
  • Delphi has been present on the Romanian market since 1997. The company has four plants in Romania with over 12,000 employees. The company’s plants in Sannicolau Mare, Ineu and Moldova Noua produce electric and electronic distribution systems and the plant in Miroslava produces components for high precision diesel systems.
  • Honeywell has some 1,500 employees in Romania. The Group has a plant in Bucharest that produces turbochargers for diesel and gasoline engines and a plant in Lugoj that produces fire and smoke detection systems.
  • Schaeffler produces bearings in its Romanian plant located in Cristian, Brasov county. The company targets a y/y turnover growth of 15% in 2012 when the production will be diversified with new types of bearings.

Main operators of private medical services in Romania

What do you know about some of the main operators of private medical services in Romania: MedLife, Medicover and Regina Maria?

For more details please feel free to consult and download our recent DEMO Competitive Analysis available at

In case you prefer to receive the pdf document, please feel free to contact us at europa @

Kind regards,

Jackie Bojor
FRD Center Market Entry Services

Wednesday, 15 February 2012

Bulgaria - Chinese automaker to open factory

SOFIA — Chinese automaker Great Wall Motor will open on February 21 a plant in Bulgaria, producing the first Chinese cars assembled in Europe, its local partner Litex Motors said Thursday.

The plant in the northern village of Bahovitsa near Lovech has been test-producing since mid-November. It has a planned annual capacity of 50,000 cars for the Bulgarian and European market and will employ up to 2,000 people.

The company also launched already its official advertising campaign in European Union member Bulgaria for the three models to be made here -- the Hover H5 SUV, the Steed 5 pick-up and the Voleex C10 city car.

Litex Motors and Great Wall Motor, one of China's leading maker of sports utility vehicles, signed the contract for the plant in 2009.

It will first assemble cars from Chinese-imported parts but Litex Motors said recently it was in talks with different subcontractors to gradually organise the production of some parts in Bulgaria.

Expert Ferdinand Dudenhoeffer from the Center for Automotive Research in Duisburg, Germany, said Great Wall had every chance to sell well in eastern Europe.

"Within five-six years, they will reach five-percent market shares in eastern European countries," Dudenhoeffer told AFP, adding that Great Wall would open the way for other Chinese carmakers to come to Europe.

"This will be a new competitor on the Bulgarian market... But it is not bad to have a carmaker in Bulgaria," Renault-Nissan's Bulgaria CEO Bernard Neuviale also told AFP at the launch of their new Renault Twingo here Wednesday.

Great Wall cars would not directly threaten the sales of Renault's Romania-made Dacia, he predicted.

"Great Wall will first have to prove many things -- in the first place that it can produce here a car of good quality and then we'll see. Their prices are also not so good," Neuviale said.

The Voleex C10 currently has a starting price of 16,000 leva (8,200 euros, $10,800), with the Steed 5 pick-up and the Hover H5 SUV at 24,500 and 28,700 leva respectively.
Renault's new Twingo has a start price of 18,000 leva.

(AFP) – Jan 26, 2012

Monday, 13 February 2012

Competitive Analysis reports - Private medical services and Retail

Private medical services and Retail are two of the most dynamic sectors in Romania.  

For a selection of Competitive Analysis reports, including price analysis, in these sectors, please feel free to consult our website at

Friday, 10 February 2012

Romania: New government's priorities

Romania's New Finance Minister aims for fiscal stability to support growth. Romania’s budget will focus on the support of economic growth through fiscal stability, as well as improved tax collection, the fair application of fiscal legislation and the prioritization of public spending.

The European Affairs Minister Leonard Orban said that Romania has very few drivers of economic growth in 2012 and in the upcoming years, and a solution is increasing the country’s EU fund absorption rate.

Romania’s new Communications Minister Razvan Mustea has pledged to extend broadband internet access to all regions not served by internet providers by 2015, develop the e-portal for tax payment and privatize state postal company Posta Romana this year.

The new Economy Minister Lucian Bode said that his priorities include simplifying legislation, the privatization of certain companies, EU fund absorption and developing new industrial capacities by tapping new mineral resources.

Source: ZF English

For specific details please feel free to contact our team at europa @

Thursday, 9 February 2012

Current Situation and Opportunities in AGRICULTURE in CE, SE and Eastern Europe

-          The agricultural production in Eastern Europe has recorded an increase in 2011 and it will continue to grow in 2012.

-          The agriculture in Eastern Europe has a high potential for foreign investments.

-          The available EU funds (including funds through the Instrument for Pre-Accession Assistance for non-EU countries, such as Turkey) are a major opportunity for the modernisation of the agricultural sector.

-          The agricultural surface owned by foreigners in Romania has increased by 10% in 2011 compared to 2010, reaching 709,000 hectares, this representing 8.5% of the Romanian arable surface.

-          The demand from the foreigners to acquire agricultural lands in Romania is a growing phenomenon at present, the foreigners being attracted by the low price of the agricultural land and the high agricultural productions recorded in the last period.

-          The agricultural production in 2011 in Romania was as follows:
o       Wheat: 7.2 million tonnes (up by 24% compared to 2010)
o       Barley: 1.424 million tonnes (up by 8% compared to 2010)
o       Corn: 11.4 million tonnes (up by 26% compared to 2010)
o       Sun flower: 1.85 million tonnes (up by 46% compared to 2010)
o       Vegetables: 4.1 million tonnes (up by 8% compared to 2010)
o       Fruits: 1.7 million tones (up by 20% compared to 2010).

-          Russia is one of the largest grain producers in the world.

-          In the first 11 months of 2011, the indices volume of the agricultural production in Ukraine was of 116.5% compared with the same period of 2010.

-          In Turkey, in 2011 compared to 2010, the increase of the cereals production is estimated at 7.6%, the increase of the vegetables production is estimated at 4.6% and the growths are forecasted to continue in 2012.

-          The demand of the agricultural machinery and technology in Eastern Europe has increased in the last years and it will continue to grow in 2012.

-          During the period 2012 – 2015, new investments will be made in the following areas:
o       Production of cereals and technical plants
o       Production of fruits and vegetables
o       Animal farms
o       Production of animal feeds
o       Acquisition of agricultural machinery and technologies
o       Use of modern technologies.

-          The importers and distributors of agricultural equipment and technologies will continue to invest in order to diversity their range of products.

- Opportunities: technology, automation, equipment, seeds, chemicals products, investments in agricultural land, animal feeds, brands, quality control.

Wednesday, 1 February 2012

Romanian Market News - February 2012

  • Franco-Belgian power operator GDF Suez will build a 48-megawatt wind farm in Romanian eastern locality of Gemenele

  • U.S. carmaker Ford presented the first official pictures of its minivan B-Max to be produced exclusively at its plant in Craiova, southern Romania. It is estimated that 45,000 - 50,000 B-Max vehicles will be built in Craiova in 2012, to be doubled in 2013.
  • Romanian lender Banca Transilvania (TLV.RO) Wednesday reported a preliminary net profit of 131.9 million lei (EUR31 million) for 2011, up 35% on the year, as provisioning costs fell, while net interest revenue was higher.
  • Cigarette producer Philip Morris Romania SRL announced its plan to invest one million EUR in modernizing its plant in Otopeni by installing new energy-efficient colling units.

  • Romanian shoe retailer Il Passo expands with EUR 200,000 store in Craiova. The retailer was set up in 1999 and runs 10 stores in Romania

  • Sales of portable computers (laptops, netbooks, and ultrabooks) rose by 10% to approximately 450,000 units in Romania in 2011 from the 400,000 units sold in 2010.

  • Romanian engineering company Adrem Invest said its sales rose 60% to over 120 million lei (EUR27.5 million) in 2011, fueled by growing business opportunities.
  • Titan Machinery, the largest dealer of farming equipment in the US, which recently entered Romania through the acquisition of Agroexpert Timisoara, chose the local market as its first expansion thanks to its potential and to similarities between the Romanian and the US agriculture. The company aims to sell USD 10 million worth of equipment in Romania in 2012, its first year on the market. Romania is the first European country where Titan Machinery has opened a subsidiary and the company has two sales units in Bucharest and Timisoara.
  • Romanian building materials producer AdePlast Wednesday said its 2011 sales rose 12.5% on the year to 143 million lei (roughly RON33 million), in line with expectations.

  • Genpact Romania, which provides Business Process Outsourcing (BPO) services continues expansion and looks to hire 400 people this year at service centers in Bucharest and Cluj.
Sources: ZF English, Romanian Business Insider