In the past five years, more than 25 production facilities largely held by food industry multinationals have been closed as owners decided to restructure their businesses. In the wake of closures, production lines have been relocated either to other domestic production facilities, or to other countries of the region, and almost 3,000 employees have been made redundant.
Analysts maintain, though, that the swirl of plant closures is not over and that we will see new production facilities being shut down starting 2011.
"Closing plants has been a trend underway in Romania for several years. This is extremely painful, given the weak level of the domestic industry against other countries. We are expecting a new wave of plant closures in all industries in 2011, and the main problem is that, given the low foreign direct investments and limited efficiency in attracting new investors, Romania risks losing its potential of Europe's industrial hub," stated Michael Weiss, vice-president and partner with A.T. Kearney management consultancy.
Both he and the representatives of Colliers International real estate consultancy believe the trend has been prompted by several factors, but that the main reason behind such decision is a financial one most of the times.
In the past five years, more than 25 production facilities largely held by food industry multinationals have been closed as owners decided to restructure their businesses. In the wake of closures, production lines have been relocated either to other domestic production facilities, or to other countries of the region, and almost 3,000 employees have been made redundant.
Analysts maintain, though, that the swirl of plant closures is not over and that we will see new production facilities being shut down starting 2011.
"Closing plants has been a trend underway in Romania for sev
