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Technomarket Agrotechnica nr. 8

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Outsource to Romania<br />

made in Romania<br />

8 reasons why you should outsource production to Romania<br />

continued from page 2<br />

Romania's geographical position makes it a country to envy: it is<br />

the gateway between East and West, opening to the sea and navigable<br />

rivers, which bring transport costs to a minimum.<br />

The existence of Romania on the map of the European Union<br />

brings many advantages to investors, both on taxes and in terms of<br />

transport and operational costs.<br />

Romania being part of the big european union family, it brings<br />

multiple advantages to investors; these advantages are quantified as<br />

low taxes, competitive running costs and very afordable<br />

transportation fees.<br />

Romania is the country connecting three continents, a very<br />

important "crossroad", acknowlwedged ever since ancient times<br />

when wine, silk, agricultural and industrial products were traded from<br />

and to the Western Europe, via Romania.<br />

Romania resources are enviable: electricity and gas costs are<br />

among the lowest in the EU.<br />

Machinery construction, metallurgy and metal processing industry<br />

branches have always been very important in the Romanian economy.<br />

The Romanian Machinery Industry is facilitated by the natural<br />

conditions the country has, the resources we possess, international<br />

relations and geographical position we have and, last but not least,<br />

the decades‐long tradition in the machinery industry. Some of the<br />

most representative sectors in Romania are: shipbuilding, car<br />

production, rolling equipments and very important, the technological<br />

equipment field supporting other industries.<br />

We can not neglect Romania's presenceon the international<br />

market as a cement producer. We are not a country to be overlooked.<br />

We have the capacity to produce 16 million tones a year, and we<br />

effectively produce 9‐10 million tones. We can not erase Romania from<br />

the world map as an oil processor either. Vulcan SA, the Romanian<br />

manufacturer for energy generation boilers and industrial equipments<br />

has developed the most advanced pumping unit for oil extraction ever<br />

2013*<br />

‐6pts<br />

‐4pts<br />

+2pts<br />

+3pts<br />

+2pts<br />

+4pts<br />

+1pt<br />

‐1pt<br />

made in Romania. The new piece of equipment will be sold in the<br />

Persian Gulf region under the “Arabian Elephant” trade name.<br />

Through impressive technical features, the achievement of the<br />

Vulcan team can ensure a production of over 1,000 barrels of crude<br />

per day with an energy consumption of just 60 kWh/h, meaning 30<br />

percent higher productivity and an increase of energy efficiency of 30<br />

percent as well over the previous top‐of‐the‐line type.<br />

These industries use Romanian machinery and equipments. We<br />

have five refineries equipped with installations made primarily by the<br />

Romanian industry. I think you saw the statistics showing that the<br />

industry having had the lowest recess was the machinery industry,<br />

both last year and in the first nine months of this year. There is a very<br />

simple explanation for the situation:<br />

‐ Romania came in with this industry between a very performing<br />

industry and another less performing one, on the middle step – the<br />

middle occupying the largest space. The peaks are few in numbers,<br />

the less performing are also few in numbers and we found ourselves<br />

in the middle.<br />

‐ Another very important factor for getting out of a crisis is the<br />

labour force flexibility. By the biological defintion Romanians are easily<br />

adaptable.<br />

‐ An important thing concerns the elasticity in the products<br />

manufacturing field. Let me give you an example here: domestically<br />

produced Dacia is a consumer, mass production automobile; it is<br />

preferred by the middle class, by the public institutions and by the<br />

employers who do not wish to keep a car for a long time, but to<br />

change it after the deprecation. We have experience gained through<br />

the country industrialization effort made during the past decade when<br />

the machinery industry was forced to achieve the impossible. For instance,<br />

we produced the equipment for the subway digging, we made<br />

the first subway carts, we delivered a part of the Cernavoda nuclear<br />

power plant – all the circuitry, including the safety ones were made by<br />

Romanian workers ‐ we were “trained” to do difficult things<br />

Romania still produces bearings, an activity where pretty advanced<br />

technologies are required. I have information that in the fine<br />

mechanics field progress is made even if in little steps. For instance, I<br />

have recently spoken to the Mecanica Fina Sinaia management where<br />

I saw a very intense preoccupation for the assimilation of modern technological<br />

components. So, there is no wonder that the machinery<br />

industry occupies a top place.<br />

An important resource is the land: the agriculture is however done<br />

with machines, too! Imagine, for instance, that we must import a<br />

combine harvester. Its transporationt alone would bear huge costs,<br />

not to mention the price of the machine itself. If we only assembled<br />

this machine here, the costs would greatly reduce. Under these<br />

conditions, any businessperson would aim to invest in a factory in<br />

Romania for assembling such equipment or even for making parts.<br />

Skilled workforce has always been an important path in the<br />

development of a stable economy in the long term.<br />

In 14 cities across the country there are world renowned<br />

universities; every year over 100,000 students graduate every year.<br />

Romanians are easy learners, with almost any foreign language<br />

being spoken correctly. Our Romanian specialists speak fluent English,<br />

but also German and French are spoken by a large number of<br />

Romanians.<br />

Romanian specialists usually speak English and at least one more<br />

foreign language such as French or German, in technical terms.<br />

In terms of costs for labor force training, Romania ranks second in<br />

Europe.<br />

ediţia 4/2015 – <strong>Technomarket</strong> 23

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