Last year, Dacia posted an over 100 million-euro profit, and this year expects more than half of the production to be exported, according to the company's general manager, Fran'ois Fourmont. "We are surprised by the success of the Logan programme. Unfortunately, in the case of Dacia, the plant cannot meet the demand, which is why we have delayed launches in certain countries, and even delayed some new models," added Ghosn. However, he did not specify which models were affected. Analysts in the car industry point to the hatchback version of the Renault - sold under the name Sandero in South America. It could have been manufactured in the Ploiesti plant earlier this year, but the limited production capacity meant production started in the Renault plant in Curitiba (Brazil) instead. The model will be produced in Romania at a later date and sold on the European market.

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General Motors, the largest American carmaker follows in the footsteps of Ford and Renault, with planned investments estimated at 500 million euros for the Romanian-based production of models from the Opel range of vehicles. The main factors behind GM's investments, as well as those of Ford and Renault, were the investments conducted by their main suppliers, which began operations in Romania a decade ago.

Other factors that prompted the American producers to become involved in Eastern Europe, and in particular Romania, are the positive economic growth rate, a growth in demand from car markets in the region, and the level of security because of the presence of American military bases in Constanta county.

"The decision will be made extremely quickly, i.e. between October and November. GM has visited several locations on the Romanian market, but if they choose Romania, the plant will be built in Cluj," sources from the car industry told Mediafax.

During the process to decide on the future location for the new automotive plant in Central and Eastern Europe, GM also evaluated industrial sites in Poland and Bulgaria. In Romania, the most likely location was decided on after an area of land was evaluated in Brasov county, in the Tetrarom III industrial park in Cluj, where Nokia, the Finnish producer of telecommunications equipment, will build a GSM terminals plant.

GM representatives have not yet confirmed the decision to place a future Romanian-based GM plant on a 100-hectare site near the Nokia Village. Sources say a decision could be made within the next two months.

"The main objective of the recent visit by GM officials to Romania was to consolidate its relations with several domestic suppliers and negotiate new contracts in order to be able to sustain the doubling in the production capacities in Russia and Poland," Julie Hamp, communications manager of GM Europe, told ZF.

Representatives of ARIS (The Romanian Agency for Foreign Investments) were not able to confirm the American carmaker's intention to build an Opel plant in Cluj, either.

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Automobile Dacia producer, owned by the French group Renault, estimated that Logan exports to international markets might reach 120,000 units by the end of the year, 35% more than last year's level. With an average price of 10,000 EUR, the value of Automobile Dacia's exports might exceed 1.2 billion EUR, i.e. accounting for approximately 4% of the estimated Romanian exports for this year. In addition to the three Logan versions, the carmaker in Mioveni - Arges county, also exports components and CKD kits (Complete Knock Down) which are required for assembling vehicles at Renault plants in Russia and Iran. In the first half of the year, Automobile Dacia exported 60,000 cars, 50% more than in the first half of 2006.

Soft drink producer Tymbark Maspex Romania forecasts net sales worth 50 million EUR in 2007, a 15% year-on-year increase. Estimates are based on increased summer demand for JNSD products (juice, nectar and still drinks). However, annual growth has been constant for still drinks throughout the year, according to data provided by market studies company AC Nielsen.

Deva-based Macon, which operates on the market of construction materials, has registered an approximately 7.12 million EUR turnover for the first quarter of this year, a 40% increase in financial indicators against 2006. The development of the constructions market is the main factor behind its sales increase, due to the big number of hypermarkets, malls and office buildings recently developed, as well as to the infrastructure projects currently underway.

Swedish furniture retailer IKEA is to open two new stores and a logistics center in Romania by next fall, with an investment of some 20 million EUR per store. IKEA opened its first 26,000 sqm store in northern Bucharest in March in the Baneasa commercial district. According to company officials, sales in the first three weeks of operation amounted to worth 5 million EUR, remaining high, and now exceeding 18 million EUR. IKEA's General Manager said some eight stores could be opened in Romania, based on the country's population. The company estimates net sales worth 40 million EUR in 2007.

Increasingly more U.S investors are coming to Romania, following the country's accession to the EU, thus demonstrating confidence in the local business environment, U.S. Ambassador Nicholas Taubman says. "More and more American investors are declaring their confidence in Romania's future. I am convinced that this vibrant new Romania can and will play an exceptional role in this region and beyond."

The energy sector needs rehabilitation investments worth some 30.8 billion EUR in the 2007-2020 period, according to a strategy submitted by the Economy and Finance Ministry. The main financing sources are to be bond issues and stock exchange listings for companies in the field. As for privatizations, energy complexes Rovinari, Turceni and Craiova are to be sold to private investors.

Businessman Vasile Nitescu, the owner of Ultex Tandarei, one of the leading vegetable oil producers on the domestic market, has decided to sell the business, a sale that will also include his biodiesel operations. Ultex, which last year accounted for 14% of the local vegetable oil market, focused on processing soybeans in the second half of 2006, as well as producing biodiesel. Through the Biodil brand, Ultex was the first domestic producer of vegetable oils to start making biodiesel in Romania.

The market of GPS equipment and services is estimated to reach 10 million EUR this year, estimate representatives of Sheba Distribution, the Romanian partner of the American company Garmin - one of the top three players in the GPS equipment industry worldwide. Sheba Distribution targets approximately 1.9 million EUR turnover this year, over 60% higher than last year, when the company had reported business of 1.06 million EUR.

Pharmaceutical company Actavis, one of the biggest producers of generic drugs, plans to build a factory at approximately 15-20 kilometers west from Bucharest, because former Sindan attained its maximum capacity. Actavis Co. has purchased Sindan, the only producer of oncology drugs in Romania, in 2006. According to company sources, costs for the first module of the new factory, set to have three modules, are estimated at minimum 50 million EUR.

Austrian company Meinl Power, part of Meinl Bank plans to build Aeolian energy power stations in east Europe, including Romania, Slovakia and Poland in partnership with local partners. The investment is estimated at some EUR 780 million.

The latest trend among textiles and footwear shops is the opening of outlet locations, where the products are 30 to 70% cheaper than in a normal in-line shop. The quality of the clothes is the same, but the price differs and is smaller according to how old the line or collection is. Until now, only sportswear companies where running these kind of shops in Romania, but things are starting to change as high-level brands from the casual and business clothes producers have entered this segment. Foreign outlet operators and real estate developers have also shown interest in this segment.

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The product has a series of advantages, such as:

- the interest is 9% p.a. fixed, being valid during the credit granting period, 6 months respectively

- the amount of the facility will be at least RON 200.000

- possibility to renew it when due, upon the client’s request, based on the economic-financial analysis

- no analysis fee;

This offer is valid until 30 April 2007 and is available in all Banca Romaneasca branches.

Banca Romaneasca makes available to its clients other two products meant exclusively for SMEs: "EURO CREDIT" credit line and "EURO INVEST" investment loan.

EURO CREDIT is meant for financing working capital or refinancing credit lines granted by other banks. The minimum amount to be granted is EUR 100.000, on 12 months, with the possibility to renew it at maturity upon the client’s request and based on the economic/financial analysis.

EURO INVEST is a lending product meant for financing investments for developing or improving current activity, such as: acquisition/ construction / improvement of the buildings – warehouses, halls, commercial or administrative spaces – or, acquisition of land, equipment, cars, fittings, transport means. As well, the loan may be granted in order to refinance the investment loans contracted from other banks, provided their initial purpose matches the above mentioned activities.

The minimum amount that may be borrowed is EUR 100.000, the client’s own contribution being 20% of the investments value.

The loan may be granted for maximum 7 years, with a grace period of 12 months.

The two lending products EURO CREDIT and EURO INVEST are granted to legal entities having at least 1 year of activity, have an annual turnover of minimum 1,5 mil. Euro equivalent, are stable from financial point of view and do not have outstanding fees and taxes to the state budget. The interest is set depending on Euribor evolution to which a margin is added calculated depending on the client’s financial performances.

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FOB exports last year rose to 25.85 billion euros, an increase of 16.2% over 2005, while CIF imports registered a 25% hike, to 40.74 billion euros.

Exports of mechanical appliances, cars, electrical equipment and audio/video equipment outperformed clothing and textile exports, after a long period in which these have dominated foreign trade.

The value of exports toward European Union member states grew 16.3% over 2005 and accounted for 67.7% of total exports.

With regard to imports, a significant portion consisted of capital goods and raw materials. The proportion of total imports of clothing and textiles registered a decrease of 2% year-on-year, to 16.1%.

The value of imports coming from European Union countries grew by 25.9% over 2005 and accounted for 62.6% of all imports.

Exports in the last month of the year were valued at 1.95 billion euros, an increase of 7.6% over December 2005 and a drop of 20.6% from the previous month. Imports during the same period totaled 4.06 billion euros, 30.7% higher than December 2005 and 0.3% smaller than November 2006.

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The value of the finite products stock in industry at the end of October amounted to 45,085 billion lei, representing 35.4% of the October resources, decreasing by 1.4% as compared to the month of September and, respectively, by 4.7% as against the same month of the year 2001.

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The main negative balances were at the state budget at 53.1 percent of the annual programme and at the state social security budget, whose enforcement in the first ten months of 2002 ended in a negative balance of 11,417.1 billion lei, i.e. 0.76 percent of the GDP.

This development was mainly the result - as in the previous years - of a rate of the collection of revenues to the state social security budget that was significantly lower than that of spending, i.e. 69.5 percent in revenues compared to 78 percent in spending.

In the first ten months of this year, the continued economic growth was accompanied by an inflation rate lower than originally forecast, with these developments mirroring at the level of the general consolidated budget by a rise in revenues compared to the same period of last year , in nominal terms by 27.5 percent and in spending by 22.9 percent.

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