1. ROMANIAN ECONOMIC NEWS

Romania - positive signals across EU by enforcing strict economic regulations
The president Traian Basescu received yesterday (30.01) at the Cotroceni Palace the joint delegation of the International Monetary Fund (IMF), the European Commission (EC) and the World Bank (WB). During the one-hour meeting, the head of state underlined, among other topics, that regulations similar to those enforced by the IMF had been introduced across the EU. "I've just returned from Brussels (e.n. from the informal European Council's proceedings), where we got positive signals. We've seen our agreement through. The EU and the eurozone's rating will most likely be upgraded by the investors, given that we've introduced in the EU regulations very similar to the IMF's rules," president Basescu stated. In turn, the head of the IMF mission to Romania, Jeffrey Franks, argued that, by its commitment to enforce even stricter economic regulations at EU level, our country would manage to send positive signals across the world.

The delegation of the IMF, the EC and the WB started last Wednesday in Bucharest the fourth review mission under the preventive stand-by agreement with Romania and would remain on Romanian soil until February 6, having scheduled meetings with the Romanian authorities, as well as representatives of the political parties, trade unions, the business community, banks and the civil society. (Full art. Nine O'clock 31.01)

Budget deficit in 2011, 4.35 pc of GDP
The execution of the general consolidated budget in 2011 ended with a deficit of RON 23.8 bln, namely 4.35 per cent of GDP, slightly below the 4.4 per cent of GDP target agreed with the IMF, the Finance Ministry data shows. Budget revenues totaled RON 181.6 bln, 7.6 per cent higher compared to those registered the year before. Budget expenditures totaled RON 205.4 bln. The main expenditure hikes were registered mainly in the case of projects financed with EU funds (+47 per cent) and of interest payments (+22.1 per cent). Expenditures on goods and services grew by 7.5 per cent, given the payment of medical services and medical drugs.

Romania might fare better than the EU, for the second year in a row
Romanian economy possibly advanced by more than 2-2.2 pc in 2011, driven by a growing industrial output and a very good agricultural year, according to an analysis made by X-Trade Brokers, whose results were released yesterday. The signal data will be known on February 15, after the report of the Statistics Institute. According to estimations, Romania possibly achieved in 2011 an even stronger economic increase than the 1.6 pc posted by the European Union as a whole, moving closer to the German performance of 3 pc. Compared to last year, 2012 is expected to bring a slowdown, as Romania's GDP might advance by 1.4 pc if Europe succeeds to appease the markets and avoid the propagation of tension from financial markets to the real economy. "(...) The scenario of Greece defaulting on its debt could spark a turmoil on financial markets, with crisis expanding to Italy and Spain, thus affecting the whole Euro zone and - in different proportions - the rest of Europe. Romania might thus register a significantly weaker result, with the risk of economic contraction," warns Victor Safta, head of the Romanian branch of X-Trade Brokers.

At local scale, in the base scenario, consumption might be supported by the growth of the salary income. Even if employees' negotiation margin in relations with employers is still low, if inflation throughout the region stays at 3 - 3.5 pc, real gains might significantly advance in 2010. The RON will possibly have another year of relative stability, as the base scenario mentions lateral dynamics between 4.25 and 4.4 pc, with temporary episodes of volatility. "If Europeans eventually are able to regain the confidence of markets, the RON will be positively influenced and will possibly drop under 4.25," Victor Safta explained.

Confidence in the Romanian economy, at a peak after July 2011
Confidence in the Romanian economy has soared in January 2012 at a peak after July 2011, up 2.7 percentage points, to 94.3 pc, Money.ro reports, quoting data released by the European Commission. In January, optimism increased among the population and industrial, service and construction companies, while retail managers said their expectations worsened. The confidence index across the European Union was on the rise as well, after plunging at a two-year bottom in December. The longer than expected crisis of the euro zone took its toll on economic prospects, as the monetary union will re-enter recession this year. But there are optimistic signs too, which hint to an improvement of the euro zone economy. In January, confidence in the economy of the monetary union registered a modest increase, after plunging to the lowest level of the last two years in the previous month, according to EC data. The confidence index advanced even more at European scale, by 1.2 points, to almost 93 pc, a sign that the morale of private economy in non-euro countries further improved. At the scale of the European Union, optimism reaches a peak in Germany, followed by the three Baltic States. At the opposite end are Greece, Portugal, Cyprus, Italy and Hungary.

INS: 7 pc unemployment rate in December
The unemployment rate, calculated according to International Labour Organisation (ILO) criteria, was at 7 pc in December last year, 0.3 percentage points down from both the previous month and December 2010, the National Statistics Institute announced yesterday in a press release. The ILO number of jobless (people aged from 15 to 74) was 703,000, lower than the previous month (727,000) and the similar month of 2010 (718,000). Based on gender, unemployment among the male population (7.4 pc) exceeds by 0.9 percentage points that of the female population (6.5 pc). ILO jobless are people aged between 15 and 74 that simultaneously meet three conditions: have no job, are available to start work within the next two weeks, and have actively searched for a job anytime during the last four weeks.

Romania-WB negotiations for EUR 1 bln loan
The credit line is approved. The IMF and the EU set aside EUR 5 bln for the government to access on in case of market turmoil. Romania hasn't drawn any money so far Romania and the World Bank (WB) are in talks over a EUR 1 bln credit line to support the Balkan nation's budget, the bank's country manager Francois Rantrua said for Bloomberg, quoted by Mediafax. Prime Minister Emil Boc's government, which is carrying out an austerity program, is negotiating with the Washington-based lender the terms of the precautionary accord, which will let it to decide at a later stage whether to draw from the funds or not, Rantrua said and he continued: "The duration of the credit line can be as long as three years." WB will join the International Monetary Fund and the European Union in a precautionary agreement with Romania, signed in March, once the credit line is approved. The IMF and the EU set aside EUR 5 bln for the government to access on in case of market turmoil. Romania hasn't drawn any money so far.

PM Boc: Romania offers stability to investors
During a meeting with businessmen, a meeting organized by the Romanian-German Chamber of Commerce and Industry at the Palace of Parliament, PM Emil Boc stated that Germany is the country's top trade partner and its main export market, pointing out that Romania currently offers stability and predictability because it is not at any major risk in the EU, Mediafax informs. Boc offered assurances that the government will not adopt populist measures in the elections year, but will instead only promote policies that can ensure economic stability. At the same time, he pointed out that there are both foreign and Romanian companies dissatisfied with some court decisions and recommended investors to resort to the Superior Council of Magistracy, stressing that he backs the principle of separation of powers and the fact that state institutions have to act independently as stipulated by law.

BVB posts best start in six years
The BET index of the 10 most traded companies on the Bucharest Stock Exchange (BVB) shot up 9.9 pc this month, the best start posted in the past six years, according to a survey conducted by "Ziarul Financiar" daily business newspaper. This is the highest BET index since 2006, when the blue-chip stocks gained an average of 22.9 pc. Stock performance this month has been the highest in nearly two years, since March 2010 namely, when the BET index was up 12 pc. Construction company stock saw the steepest rise, among which construction material manufacturer Prefab Bucuresti (PREH), 52.4 pc.

2. ENERGY
Energy companies monitored by IMF have debts under target
The eight companies controlled by the Ministry of Economy, Commerce and Business Environment (MECMA), put under monitoring by the International Monetary Fund (IMF), had arrears under the level set for the end of last year, but higher than estimated losses, Mediafax informs.For the eight companies monitored in 2011 - Termoelectrica, ELCEN, Compania Nationala a Huilei, Societatea Nationala a Lignitului Oltenia, Oltchim, Complexul Energetic Turceni, Electrica Furnizare Transilvania Nord, and Electrica Serv - following an analysis of economic data estimated for the whole year, it was noticed that, compared to the set targets, arrears have dropped from RON 10,017 M to RON 8,481, reads a press release issued by the Ministry of Economy, after a meeting between Minister Ion Ariton and the IMF delegation. The operational loss targets were exceeded by 7 pc, but the IMF envoys considered the objective target was reached, because state aid procedures for Oltchim will be finalised after the IMF visit, while Electrica Serv registered losses before the reorganisation through break-up. Four of the monitored companies - ELCEN, Complexul Energetic Turceni, ANLO and Electrica Furnizare - reported profit last year. Furthermore, the IMF asked the Economy minister to find solutions for terminating the bilateral contracts concluded by Hidroelectrica.

Another topic on the agenda of talks with the IMF delegation was privatisation. The Ministry of Economy wants to sell the majority stakes in Oltchim, Electrica Furnizare, CupruMin, and the companies resulting from the break-up of Electrica Serv, as well as several minority stakes in Romgaz (15 pc), Transelectrica (15 pc), Transgaz (15 pc), Hidroelectrica (10 pc), Nuclearelectrica (10 pc) and the Electrica distribution companies (minority stake).Co ming to the implementation of professional management in the first four state-run companies, the contracts with international recruiting companies will be signed by February 15, and the new managers will take their places in Oltchim, Electrica Furnizare, Romarm and Hidroelectrica until the end of March, the Ministry of Economy announces.

GDF SUEZ Energy Romania enters the wind energy market
GDF SUEZ Energy Romania announced its decision to build a wind farm in Romania. The project, located at Gemenele, Braila County, was recently purchased from real estate developer Belrom, the company mentions in a press release. The first GDF SUEZ wind farm in Romania will have a capacity of 48 MW (equivalent to the annual consumption of 50,000 Romanian households), generated by 21 turbines of 2.3 MW each that will be delivered and installed by Siemens. The project has all due permits and licenses, including the technical contract of connection to the national power grid, and the purchase of equipments is in an advanced phase. Electricity production could begin towards the end of 2012. Speaking about this project, Eric Stab, CEO of GDF SUEZ Energy Romania said: "The construction of this first wind farm shows our confidence in Romania's potential in the field of renewable energies and will reinforce our position on the energy market."

Thermal power plant in Suceava, global efficiency of over 90 pc
The cogeneration power plant in Suceava, who will be built by Adrem Invest, a 100 per cent Romanian company specialized in industrial and energy engineering, will function on biomass, the global power generation efficiency of the EUR 60 to EUR 70 M project surpassing 90 per cent, Adrem Invest President Adrian Bodea stated yesterday during a press meeting.Construction works will start in April, two months later than initially announced, and will be completed in 2013. At the same time, the Romanian company seeks to enter the solar power sector in the next two years by building and then selling solar power farms with capacity in excess of 10 MW in areas such as the Buzau and Alba Counties. In other words, for Adrem Invest the economic crisis has represented a significant boost to business. Having more than 700 employees, the company registered a turnover of EUR 30 M last year, up by 60 per cent compared to 2010, taking advantage of the opportunities offered by the economic crisis.

"In 2012 we will register two-digit growth and that's a conservative estimate," Adrem Invest Vice-President Corneliu Bodea stated in his turn. According to company representatives, approximately 25 per cent (EUR 7 M) of the turnover represents exports. Moreover, the Romanian company is already in an advanced stage of negotiations in order to do business in the Czech Republic with companies specializing in the treatment of liquid steel. Marking a 20-year presence on the local and international market this year, Adrem Invest continues to expand in the US, China, Western and Eastern Europe, the Community of Independent States and is also looking towards Middle Eastern countries. Dumitru Prunariu, the first Romanian astronaut, was nominated Adrem Invest Ambassador on the occasion of the anniversary.

ExxonMobil and OMV Petrom:First well in Neptune Black Sea perimeter indicates presence of fossil fuel
The first deepwater exploration well in the Romanian sector of the Black Sea developed by ExxonMobil and OMV Petrom, Domino-1, indicates the presence of fossil fuels, according to a release sent on Friday by the two companies.
The future tests will provide more precise information on the potential fossil fuels, says ExxonMobil Exploration and Production Romania Limited, a subsidiary of ExxonMobil.

"This is encouraging but still too early in the process of exploration and evaluation of data to speculate if they are going to be tradeable or not," reads the release.
The Domino-1 well is located in Neptune block, 170 km off the shore, in waters 1,000 metres deep and is drilled with state-of-the-art technology. The drilling began late in 2011 and are still ongoing. It is estimated that the total depth of the well will be more than 3,000 metres below the sea level.
The Neptune perimeter stretches over about 9,900 square kilometers in waters ranging between 50 and 1,700 metres deep. ExxonMobil Exploration and Production Romania Limited and Petrom signed an agreement in November 2008 by which ExxonMobil purchased 50 percent of the deepwater area of the Neptune perimeter. Since that moment, the two companies worked closely to purchase 3D seismic data and to evaluate the fossil fuel potential in this particular perimeter.
Between 2009 and 2010, Petrom and ExxonMobil purchased data for over 3,000 square kilometres within the Neptune perimeter with the aid of the state-of-the-art 3D seismic data, within the largest seismic programme ever held in Romania.AGERPRES

3. FINANCIAL AND BANKING NEWS
International reserves of Romania, 37.08 billion euros on January 31
On January 31, 2012, Romania's international reserves totalled 37.08 billion euros, compared to 37.25 billion euros on December 31, 2011.
Foreign currency reserves stood at the level of 32.696 billion euros, compared to 33.193 billion euros on December 31, 2011.
Inflows stood at 955 million euros, representing changes in the foreign exchange reserve requirements of the credit institutions, inflows into the European Commission's account, inflows into the Ministry of Public Finances (MFP) accounts, revenues from the management of foreign exchange reserves a.s.o.
Outflows totalled 1.452 billion euros, representing changes in the foreign exchange reserve requirements of the credit institutions, interest and principal payments on foreign currency public debt, a.s.o.

The gold stock has held steady at 103.7 tonnes. However, following the change in the international price of gold, its value amounted to 4.393 billion euros.
During the month of February 2012, the payments due on public and MFP guaranteed foreign currency denominated debt amount to 180.36 million euros.
According to the Technical Memorandum with the IMF, BNR is obliged to announce, in the shortest time, the Fund and the European Commission if the stock reserve falls below the threshold of 23 billion euros or in the situation in which Romania's foreign currency reserve is reduced sharply by more than 600 million euros.
AGERPRES

BNR reduces key interest rate to new all-time low - 5.5 pc
At the same time, the interest rate on the deposit facility was reduced to 1.5 pc, while the interest rate on the credit facility will be set at 9.5 pc a year.
The National Bank of Romania (BNR)'s Board of Administration (BA) decided yesterday(1.02) to reduce the key interest rate by 0.25 pc, from 5.75 to 5.5 pc a year, a new all-time low, a press release by the central bank informs. The reduction of the key rate will be applied as of today,(1.02) bringing along the modification of the deposit facility interest rate from 1.75 to 1.5 pc, while the credit facility (Lombard) rate will be reduced from 9.75 to 9.5 pc a year. Since the beginning of the year, BNR sliced the key interest rate by 0.5 pc, enforcing the first reduction, of 0.25 pc, on January 6. The central bank motivates its decision on the grounds that the annual inflation rate slumped to 3.14 pc in December 2011 from 7.96 pc in December 2010, in keeping with BNR's estimates, while the annual adjusted CORE2 inflation rate shrank to 2.37 pc compared to the 2011 peak value of 4.77 pc, reported in March. The economy's meeting the inflation target confirms the consolidation of the deflation process, backed by a prudent monetary policy, the waning of first round-effects of the VAT hike and the favourable evolution of volatile prices, particularly for food products, with an impact on the prices of processed food products. At a national level, statistic indicators reflect the aggregate demand deficit persists despite positive trends in the exports, industrial and agricultural production sectors, the maintenance of the current account deficit, as well as a gradual recovery of loans to the private sector. "The current forecast reconfirms the estimate placing the annual inflation rate within the variation margins of the set target for the analyzed interval, which creates the premises for maintaining financial stability and consolidating the trust of trading agents and of the people as essential elements in ensuring the sustainable recovery of Romanian economy," the release further reads. Risks associated mainly to factors outside the central bank's sphere of influence - the adjustment of administered prices, potential slippages concerning the fiscal policy and the implementation of structural reforms, as well as tensions arising from the electoral context - persist, however.
These risks, compounded by uncertainty over trends of the global economy, cash flows and volatile prices, call for a careful calibration of monetary policy instruments with a view to ensuring medium-term price stability and overall financial stability. On the same occasion, the central bank decided to maintain reserve requirements for the banks' RON and foreign currency deposits at current levels, namely, 15 pc for national currency deposits and 20 pc for those in foreign currency. The BA of BNR analyzed and adopted the quarterly report on inflation, a document which will be presented to the public in a press conference on February 7, 2012, during which the calendar for the future monetary policy meetings will also be announced.

Central Bank lends EUR 1.24 bln to three banks
The National Bank of Romania (BNR) yesterday (29.01) lent EUR 5.382 bln (EUR 1.24 bln) to three banks for seven days, in a repo auction at the key interest rate of 5.75 pc a year, Mediafax informs. A bigger loan was extended by BNR on December 27, when the Central Bank granted RON 6.71 bln (EUR 1.56 bln) to six banks. By conducting such operations, BNR offers cash to commercial banks, in exchange of state bonds

Mortgage loan regulations take effect today
The National Bank of Romania (BNR) regulations come into effect today, Jan 31, on a minimum down payment of 15 pc required in order for applicants to take out mortgage loans after, in 2011, the Central Bank modified the credit lending requirements for home purchases, Realitatea.net reports. "The physical persons who want to take out a mortgage or home loan and earn a RON income shall make an advance payment of a minimum 15 pc of the value of the home property they want to buy, for EUR loans, and of at least 40 pc for USD, Swiss franc or Japanese yen loans," according to the BNR new regulations which come to force as of today, 90 days after being published in the Official Gazette, on Oct 31, 2011.

EIB, Cabinet seal memorandum
The European Investment Bank (EIB) has signed with the Government of Romania a Memorandum of Understanding (MoU) on technical assistance to support implementation of EU projects co-funded by the Bank in Romania, a press release informs. Wilhelm Molterer, EIB Vice-President responsible for Romania, who signed the MoU with Leonard Orban, Romanian Minister for European Affairs, commented: "(...) I am convinced that this effort, which has involved close coordination with the European Commission as a joint initiative with the Romanian Government, will play an important role in facilitating the utilisation This of EU Funds in the best possible way for the benefit of Romania". agreement will focus on increasing both the speed and quality of absorption of the EU Structural Funds via assistance with project management and implementation. Romania has requested this support from the EIB in view of its long-established expertise with project financing, particularly in the less developed regions that are the recipients of EU Structural Funds, in order to help strengthen Romania's capacity in terms of project implementation, as well as policy and strategy formulation, and sector and project planning. In this framework the EIB will provide support for priority projects to be financed in the 2007-2013 programming period and help to develop the capacity to manage the implementation of projects in view of the upcoming 2014-2020 programming period. This will be done in line with its mandate, the relevant EU regulations, and in coordination with its partner, the EU Commission, and JASPERS - (Joint Assistance to Support Projects in European Regions). A similar Memorandum of Understanding has been signed between Romania and the World Bank.

Ghetea: Banks interested in agriculture, EU - funded projects
The crediting of agriculture and public administration aimed at putting EU-funded projects into practice remains an area of interest to the Romanian banking system in 2012 as well, Radu Gratian Ghetea, president of the Romanian Banks Association (ARB) and president of the CEC Bank, told a conference on Romania's economic prospects in 2012, according to doingbusiness.ro. Banks also await the beginning of major investments, Public-Private Partnerships. These elements could define the banks' crediting interests in 2012. Banks are glad for PPPs to be implemented at the soonest, so that financing comes in," Ghetea said, who added that there are no other sectors estimated to witness credit resumption.

Also, Ghetea holds that, this year, the real estate sector will just try to keep the flame alive, namely to conclude the developments started already. In Ghetea's view, the Romanian banking system is at a crossroads with respect to crediting, mainly given the new crediting regulations that took effect on Feb 1, 2012, which bring even more personal loan restrictions, "while giving more room to legal entities". In the ARB president's opinion, this is due to banks' unwillingness to take more risks, boosted by foreign capital banks' restraint to increase their risk exposure in the region, including Romania, due to problems of their own. "Entrepreneurs, too, show some reluctance to take out loans. All in all, crediting has not evolved to the level of giving us the satisfaction that the banking system contributed to economic growth and development as might have been expected, save for the exceptions already mentioned, agriculture and European funds, where competition remains tight given there is an interest considering 4 to 5 banks submit offers in tenders held by companies and local administrations. Unfortunately, other areas are not that attractive," Ghetea said.

EximBank financed an investment project in the Satu Mare County
EximBank has granted to the company Solarex of Satu Mare a financing package exceeding EUR 6 M to enable the accomplishment of a large investment project relying on a funds received within the Regional Operational Program 2007 - 2013 (REGIO), Top priority pier - Consistent Development and Travel Promotion. The project is meant to support the building of a travel and health care services compound located in the city of Satu Mare, using the geo-thermal water available in this area. "Most convincing for us in making the decision to finance such project, was among others, the further effects on local and national economy of the respective investment, namely the increase of travel activity in the area known for its beneficial water sources, and the appearance of new job opportunities. Moreover, we intend to be more determined about supporting commercial companies involved in EU funded projects, the partnership with Solarex setting an example of our part, likely to inspire more entrepreneurs to approach the EximBank offer in the domain," declared Ionut Costea, president of EximBank.To unfold such an investment, the company in Satu Mare concluded a financing agreement for an amount of about EUR 8.5 M with the Ministry of Regional Development and Travel through the Agency for North-West Regional Development, with roughly EUR 5.5 M of the amount accounting for grants.

"We have started working last summer and according to estimates it should be finished by the end of the year. However, the mild weather enabled us to work even in winter time, so that we may inaugurate the compound earlier," said Nagy Erzsebet, manager of Solarex.

EximBank offers to companies and public authorities projects relying on structural funds a mix of products including co-financing and pre-financing loans as well as comfort and non-committal letters or guarantees.Therefore, according to the type of project relying on structural funds, EximBank may extend investment loans meant to co-finance the constituent accounting for company's own contribution. Through such product a company having entered into a financing agreement with the management authority is entitled to 100% of the value of eligible and non-eligible expenses incurred by company's contribution.Likewise the bank may pre-finance the loans required by companies to bridge the gap between the time of payments to project related suppliers and the time of collection from the management authority, covering for 100% of the EU funds granted. The package is completed with comfort letters, through such an instrument the bank expresses its willingness to place at company's disposal the funds for project implementation, provided the management authority has agreed to the project. EximBank can also guarantee those credits engaged by companies with the commercial banks to turn to good account the projects relying on structural funds.

Banca Transilvania posts 35 pc profit increase for 2011
Banca Transilvania (TLV) posted a profit of RON 131.87 M (EUR 31 M) for last year, accounting for a 35 pc increase over 2010's figure, driven by an advance of the crediting process, higher incomes from interests, and lower expenses with provisions, Mediafax reports. The assets of the bank soared by 19.2 pc, to RON 25.74 bln at the end of December, up from RON 21.58 bln at the end of 2010. Net expenses with provisions topped RON 531.77 M, down 17 pc against December 2010. Of this sum, the net cost of the credit risk was RON 461 M, compared to RON 598 M in 2010.

4. COMPANIES NEWS

Bosch to inject EUR 77 M in production unit in Cluj
German auto part manufacturer Bosch will be given on concession a 215,000 sq.m land area on which it will erect a production facility in Cluj County, an EUR 77 M investment, according to Bosch presented to PM Emil Boc, according to Mediafax. The German group estimates the investment will provide over 300 new jobs in a first phase, according to a Government press release.The Bosch delegation headed by Guenther Gaub, vice-president executive division Auto¬mobile Electronics, met with PM Emil Boc, who assured Bosch officials that Government will provide state assistance to the investment project. Bosch would place its production facilities on 21 hectares of land in the industrial park Tetarom III, where the Nokia mobile phone plant used to operate. The Bosch Group, which has been doing business in Romania since 1994, has five companies operating in this country, namely Robert Bosch, BSH Elec¬tro¬casnice, Bosch-Rexroth, the Blaj-based factory Bosch-Rexroth Romania and the Commu¬nication Centre in Timisoara. In 2010, Robert Bosch SRL reported a business turnover figure of RON 249.5 M, circa EUR 59 M, according to the Finance Ministry website.

Two Dutch companies will create 250 jobs in Cluj County
Voc Logistics, a Dutch logistics company, will open its first work station in Romania near the Transilvania Motorway and hire over 100 employees. In its turn, foodstuff equipment manufacturer Fencs, also from the Netherlands, will open a 150-employee factory at Apahida, Mediafax cited Cluj-Napoca interim mayor Radu Moisin as saying. Ionut Luca, Administrator Fencs Industries SRL, said that the company of which he is a representative will produce stainless steel equipment for the foods, pharmacy and petrochemical sectors and also export production lines to Western EU member countries. The investment in the Apahida factory will add up to EUR 2 M over the next three years. Production will begin in March, with the opening of two production lines, for processing vegetables and dairy products respectively," Luca said.

Ford to produce 60,000 B-Max units at Craiova this year
Ford will make 60,000 B-Max units at the company's Craiova plant this year, and 100,000 units next year, Mediafax reports. Jan Gijsen, President Ford Romania, said the production cycle will be of 1.7 minutes/car this year, and only 1 minute per car when the factory will operate at full capacity. The number of engines made will differ from that of car bodies, as a great deal of the former will be delivered to other Ford factories. The head of Ford Romania also said that negotiations are in advanced stage on the updating of the contract whereby Ford acquired the Craiova auto factory in 2007, and he is hopeful the two parties will reach common ground soon. According to the original contract signed with the Credit Asset Resolution Authority, Ford Romania was supposed to reach in September 2011 a production volume in excess of 250,000 units, otherwise, the US car maker would have paid damages to the Romanian state worth up to 25 pc of the purchase value. Nonetheless, last year, Ford secured government's agreement on the deadline being extended into 2013.

De'Longhi to buy Nokia plant in Cluj
Italian home appliance manufacturer De'Longhi will buy the Nokia plant in Cluj, according to yesterday's (24.01) announcement by the two companies. "De'Longhi is going to integrate the production facility as a pivotal part of the group's development strategy, contributing to the its international expansion justified by the group's steep growth. De'Longhi also plans to adjust its manufacturing capacity and to diversify its production platform in order to balance its production from the Far East towards Europe where De'Longhi operations are carried out in a plant in Italy," according to the joint press release, Mediafax informs. The transaction will be submitted for approval by the Competition Council. The two companies estimate the transaction will be concluded in the first quarter of this year.Alin Tise, chairman of the Cluj Council, yesterday said that Italian home appliance manufacturer De Longhi will employ 600 to 1,000 people at its upcoming Jucu plant. "Jucu will be home to De Longhi's fifth-largest plant worldwide, an investment of up to EUR 30 M. After talks with De Longhi officials, they accepted, in principle, the notion to subcontract home appliance components to Romanian producers. Production could begin this year," Tise said, who also announced that talks are at advanced stage with a manufacturer of auto parts which could open for business on the Teratom 3 industrial platform, which is home to the Jucu plant as well. ‘We hope to wrap up the talks in mid February. The auto parts company has in view the creation of 1500-2000 jobs," Alin Tise said.

Twenty Romanian firms to attend world's largest organic trade fair

Biofach 2012
Romania will participate 20 companies at the world's largest organic trade fair Biofach 2012 to be held in Nuremberg, Germany, over Feb. 15-18. The event is supported by the Association of Romanian Organic Producers Bio Romania and the Ministry of Economy, Trade and Business Environment, the Department of Foreign Trade.
At Romania's national exhibition stand, the 20 companies will show organically authorized products such as cereals and oily seeds, forest fruits, honey and bee products, oils, dietetic flour, integral flour, bread and bakery products, seeds of aromatic herbs and spices, forage, milk and dairy products, wines, fruit juices etc. The exhibitors will also display works of art and traditional Romanian art objects.
'This year, at Biofach 2012, Romania wishes to prove to the world that the Romanian organic agriculture has a great potential and can turn into a great producer and exporter of organic products and food products. According to worldwide statistics, Romania is among the world's first 20 exporters of organically authorized agricultural products,' Bio Romania Chairman Marian Cioceanu told Agerpres.
Romania's organic agriculture has tripled its number of active operators in the system up to 10,000 in 2011 and the increase of subsidies in this sector could double the number of the farmers entering the system of organic authorization at the end of next year.
Marian Cioceanu considers the solutions to emerge from the economic crisis and for a long and medium term sustainable development of Romania are the organic agriculture, the eco-tourism and the ecologic agri-tourism, 'the most efficient, rapid and safe strategies of development for Romania.' In addition, turning the subsistence farms into organic micro-farms is one of the major solutions of sustainable development for the Romanian village, according to the Bio-Romania chairman.
Biofach is the world's largest organic trade fair, with over 2,500 companies from over 90 countries exhibiting their products on 88,500 square meters and over 44,500 visitors slated to attend the event, among whom over 20,000 visitors coming from other countries. AGERPRES