In the absence of a well-established raw material supplier system, salary costs in Romania can be lower than in China, but they are not enough for a plant to be opened here, say the representatives of Taiwan's ADDA Corporation.
Romania and the other CEE countries are not an attractive location for the opening of a plant that should produce high volumes of cooling systems for computers because of the weak performance in the raw material distribution system, say the representatives of ADDA Corporation, the world's third biggest producer of fans for the IT industry.
"When you consider a plant, you do not look only at workforce costs. Several years ago we decided not to set up a plant in CEE because of raw material supply flaws. It's very hard to find a good supplier in Europe, but if we found it we would build a plant in the region. Salaries can be attractive, but it also takes raw material," stated Morris Yang, international sales manager with ADDA Corporation during a meeting with Eastern European journalists organised by Taiwan External Trade Development Council (TAITRA).
However, another possibility of opening a production facility would be for a large PC producer to open an assembly facility in the region, says Tim Ho, the company's general manager.
In the absence of a well-established raw material supplier system, salary costs in Romania can be lower than in China, but they are not enough for a plant to be opened here, say the representatives of Taiwan's ADDA Corporation.
Romania and the other CEE countries are not an attractive location for the opening of a plant that should produce high volumes of cooling systems for computers because of the weak performance in the raw material distribution system, say the representatives of ADDA Corporation, the world's third biggest producer of fans for the IT industry.