FMCG producer Procter & Gamble will invest over USD 100 million in a new upstream unit for personal care products manufacturing in Urlati, Prahova county. The opening of the plant specialized in personal care manufacturing will bolster workforce by 300.
The new upstream unit will cover 25 hectares, which will ensure the required space for future expansion of production capacity. The plant will start operating as of mid 2010.
Urlati-based plant is the first Greenfield investment ever made by P&G in Romania and is designed to supply European markets.
The company analyzed all options of setting up the plant in Urlati since 2007, choosing Romania over Turkey, Russia, Poland and Ukraine.
An attractive economy, costs and fees for production and transport are the major factors that climbed Romania on top of the list.
“Our expectations are linked to the opportunity of working together with Romanian authorities in finding solutions for a constant growth of investment value and to increase workforce,” company’s External Relations Manager, Ramona Brad said in an interview.
She stressed that the new location will fuel the fast-paced climb up on the shampoo and conditioners market in the region.
“Considering that FMCG segment underwent a sustained growth pace in Eastern Europe, the set up of a plant near markets with highest development, it is only a matter of course. We cannot confirm at this moment what products in beauty range we will produce. This will depend on the capacity evolution at the plant, and by the business need evolution,” Simona Brad added.
10% advance for P&G business in 2009
P&G posted in 2007 a 40% market share for detergents and beauty products, over 60% in child care products and body care and approximately 20% in oral health care segment.
For 2008, the company sees a minimum 10% growth on overa
