Daimler Plans to Invest in Romanian Transmission Plant image

Daimler plans to make a large investment in Romania to manufacture transmission components at its JV’s plant in Cugir, according to Handelsblatt newspaper.

Earlier this month, the Romanian financial daily Ziarul Financiar was publishing a report according to which Daimler plans to open a new plant in the country and was citing Prime Minister Victor Ponta who said that a prestigious German automaker was to open a plant in the country and that a memorandum of understanding has already been signed. He did not give the name of the company.

“A few days ago at a government meeting, we … have approved a memorandum of understanding with one of the biggest and most prestigious companies in Germany, which will open a plant in Romania,” Ponta told private television station Antena 3. “The deal between us is to announce it together.”

This investment was unexpected taking into consideration that in 2008 Daimler chose Hungary instead of Romania to build a new factory. Romania is already home to Dacia, owned by Renault and Ford, which were attracted here by skilled and cheap workforce and also flat tax on profit and income. The Romanian media says that the new plant in the country will produce car parts.

Source: Reuters