The Bosch Group plans to set up a location for the manufacturing and development of automotive electronic control units in Cluj-Napoca, Romania.
In the first phase of construction work up to the end of 2013, the planned investment is 77 million euros. Construction work is to start in the second quarter of 2012, and manufacturing is scheduled to begin in mid-2013.
The resulting facilities will cover a total floor space of 38,000 square meters. By the end of 2013, it is planned that some 340 associates will work in manufacturing and development in Cluj-Napoca.
In the years that follow, the location is to be further expanded.
Bosch, one of the world’s largest private industrial conglomerates, expects profits to rise this year but to fall short of its targeted increase because of high raw materials costs and investments in new businesses.
For the full year the German company, which employs more than 300,000 people, hopes to achieve a “modest” increase in sales of between 3 and 5 per cent.
“Economic uncertainties remain high, even if the euro-zone debt crisis has relaxed slightly,” Chief Executive Officer Franz Fehrenbach said in the statement.
“With raw material prices remaining high and further investment needed in new business areas, it will be more difficult to reach our target corridor of 7 percent to 8 percent in 2012.”
The Bosch Group currently has three locations in Romania. In Bucharest, it has a sales company for power tools, thermotechnology, security systems, and automotive aftermarket products, and it runs a communication center in Timisoara.
In Blaj, it has a manufacturing facility for linear-motion technology, which is currently being expanded to include manufacturing operations for automotive technology. In total, some 1,400 associates currently work for Bosch in Romania.