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26th april 2007

EUR 8 M programme to promote Romanian tourism

The Ministry for SME, Tourism and Liberal Professions will implement a programme to support the Romanian tourism. The programme budget will amount to EUR 8 M in 2007, Minister for SME, Tourism and Liberal Professions Ovidiu Ioan Silaghi stated in a recent interview to Rompres.

“The promotion and revitalisation of the Romanian tourism can only be achieved by improving tourism offerings and the quality of services. Employers in the tourism industry should take into account the foreign competition,” Silaghi said.

Tomorrow and Friday (April 26 and 27) the Minister is to meet with Constanta local officials, tour operators and hotel operators and beach concession holders, to tackle seaside tourism issues. Romania should focus on bringing foreign tourists in, rather than on persuading Romanian tourists to spend their holidays in the country, and countries with significant potential are those from the ex-Soviet space and China, Ovidiu Silaghi believes.

The president of the former National Authority for Tourism, Monica Barbuletiu, will be state secretary for Tourism at the newly established Ministry led by Ovidiu Silaghi, according to several sources.

Suez group interested in Turceni, Rovinari power complexes

French utilities group Suez is interested in acquisitions in the Romanian electricity sector and in the Rovinari and Turceni power complexes, Minister for SME, Tourism and Liberal Professions announced.

In fact, according to Silaghi, as many as 20 French investors have announced plans to enter the Romanian market in the ensuing period.

“Some of the most important companies which eye the Romanian market include Aeroport B Paris, La Poste, Paribas, Calion, Electrabel.
Source: Nine O'Clock

Volksbank estimates gross profit of EUR 22.11 M in 2007

Volksbank Romania intends to make a gross profit of EUR 22.11 M compared to EUR 13.7 M in December 2006 with assets worth EUR 2.3 M compared to EUR 1.38 bln at the end of last year. The bank intends to reach a market share of 3.25 per cent by the end of the year compared to 2.7 per cent registered in December 2006, the lending institution informed on Wednesday. Asset-related estimates are higher than the originally announced ones of EUR 1.9 bln.

The bank’s loan portfolio will reach EUR 1.45 bln compared to EUR 802.5 M in December 2006. Attracted deposits will rise from EUR 310.5 M at the end of last year to EUR 390M in December 2007. Volksbank Romania wants to invest around EUR 20 M in expanding its network, in IT and in refurbishing headquarters this year. The bank’s assets were standing at EUR 1.77 bln and the profit at EUR 4.1 M at the end of Q1.

Volksbank Romania will establish a brokerage company in the real estate sector that will have the role of match-making the bank’s clients who wish to sell or buy properties, bank President Gerald Schreiner informed a press conference. The company will be named Volksbank Real Estate Services and will start operations in two or there months from now. Volksbank Romania intends to finance estate projects worth EUR 50 – 60M this year, about half of which will be allocated to investing in commercial space, stated Simona Fatu, Vice-President of the bank, quoted by Mediafax.

The Romanian Central Bank (BNR) has returned Volksbank’s proposals in respect its revised lending norms and the bank is supposed to amend certain provisions in the documents, added Schreider, also indicating the possibility ‘of not expressing that well’. The bank president showed that the documents would be changed that week and re-sent to BNR the following week, also indicating that the bank might abrogate the down payment condition required of specific categories of customers.

Volksbank Romania has recently appointed Herwig Burgstaller, former employee of HVB Tiriac, to replace Klaus Mueller who had taken up a job with a Kazakhstan bank. At Volksbank, he will be in charge of credit risk management, IT, auditing and legal advice.
Source: Nine O'Clock

Microchip inaugurates new design center in Romania

Microchip Technology Inc., a supplier of MCU and analog semiconductors, announced it has inaugurated a design center in Bucharest, Romania.

The new center is part of Microchip's worldwide network of design centers, located in India, Switzerland and the U.S. According to the company, its objective consists in playing a "pivotal role in enhancing Microchip's existing product portfolio, and in developing technologies that continue to set new benchmarks for price, performance and ease of integration."

Microchip said it has recruited 15 employees, with an intention to count 30 jobs by the end of 2008 and 100 jobs over the next four years.

"Bucharest was chosen as the location for Microchip's newest design center because it takes us closer to our customers who are increasingly turning to Eastern Europe for design and manufacture," said Rich Simoncic, VP of Microchip's Analog and Interface Products Division, in a statement. "It is only by working closely with our customers that we can understand the challenges they face and ensure that we are developing the right products for them."
Source: Times Asia

Michelin Romania Truck, OTR Tyre Production up 23%

The factory, which focuses on the production of truck and OTR tyres, currently has an annual output of 600,000 units.
Speaking to local media, factory manager Jana Popa painted an upbeat picture of the coming year. "We have already conquered the market of tyres for agricultural equipment, heavy vehicles and lorries, which will ensure an over 10 per cent increase in the volume of our production, while at the same time doubling the volume of semi-finished products exported to Eastern Europe,” she said. “We are also relying on the fact that we have regular clients buying our tyres and demand on the market is currently witnessing an upward trend."

The Zalau factory, acquired from the Tofan group in 2001, produces tyres for lorries under the partner brands Taurus, Kormoran and Riken, as well as Michelin-branded industrial tyres. In 2006 the plant also began supplying semi-finished products to be used in the manufacture of tyres. According to Popa, semi-finished products prompted a 40% boost in turnover. "Until 2005, we manufactured semi-finished products exclusively for our own use. However, last year we began to make these products for customers in Eastern Europe as well," she explained.

Company representatives did not wish to specify the exact turnover registered by the Zalau-based plant. However, in 2006, Michelin Romania's consolidated net turnover exceeded 260 million euros, with the estimated growth for this year standing at 20%-25%.

"Our Michelin-branded tyres are destined for an international market, which makes Silvania a unique producer within the Michelin Group, with the remainder of brands being dedicated to the European market," Popa added, commenting that says Romania has become a hub for Michelin’s Southeast Europe operations. The company sells the majority of its products to Bulgaria and to Balkan countries belonging to the former Yugoslavia.
Source: Tire Review Online

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