Florin Ionut, administrative and financial manager of SEWS Romania says the component producer will no longer invest heavily in development this year, consolidating its activity instead. SEWS (Sumitomo Electric Wiring System) posted a turnover worth 54.5 million euros (37.6 million pounds sterling) in the first six months of the year, a 17% increase against the same period last year.

"The growth in the first six months could have been bigger, given the investments we made, but a series of unfavourable circumstances, like the difficult situation on the European automotive market, the rapid growth of raw materials and transports costs have hindered our sales growth this year," said Florin Ionut.

According to him, another factor that had a negative influence on the turnover growth was the lack of workforce, due to the emigration trend in Hunedoara and Alba counties.

The SEWS official estimates a turnover worth over 100m euros for this year, after it had reached some 94.5m euros last year. The company started collaboration with the international group PSA Citroen-Peugeot this year.

SEWS also produces electric wiring for Honda, Renault-Nissan, Toyota and Ford-Mazda in Romania at the moment. "This year we will not become involved in big investment projects because, after the rapid growth seen in the last five years, we want 2006 to be a consolidation year. This year, we also intend to develop a partnership with certain suppliers of component parts for electric wiring in Romania and we are currently analysing the existing offer," Florin Ionut also said.

The company last year made investments of over 5 million euros, especially in the technological development of the plant in Alba Iulia, with the total volume of SEWS investments in Romania exceeding the 45 million-euro mark by the end of last year.

Sumitomo Electric Wiring Systems Ltd. Eur