Business Review

GE is analyzing the possibility of manufacturing wind turbines in the region in the near future. On the shortlist of potential countries for the location are Romania, Bulgaria and Poland. The GE Energy division, which includes Romania, Bulgaria and the Republic of Moldova, has already signed an agreement reserving next year's production of wind turbines for Continental Wind Partners - Good Energies, which will develop in the first phase a 200 MW wind farm.

Like almost every sector of the holiday industry, wine tourism is crying out for attention and adequate promotion. The number of tourists choosing to spend a vacation in the Romanian vineyards is steadily increasing, on the back of the changes that are taking place everywhere in the country, but there is still no definitive promotion strategy from the state. Wine producers have taken matters into their own hands and made investments to boost their tourism incomes.

With every third investment in Romania of Austrian origin, what is it that makes Romania so appealing over there? Diplomats and CEOs of Austrian companies that have located a production hub here, plus big insurance and financial investors say Romania is a natural development target because of its market and the opportunities offered by all economic sectors, while the cliché of ‘cheap labor' is no longer the case.

Once SUVs and off-road vehicles topped Romanians' must-have lists when buying a car, but now things have changed. Horrendous traffic and unexpected hikes in fuel prices have prompted drivers to look to smaller cars. Already carmakers have announced that they will launch various models from the mini, small and compact classes by the end of this year.

The villas built for the Ceausescu family, which are tucked out of sight amid natural surroundings and "far from the madding crowd," are one of the few positive legacies left behind by the dictatorial couple. Spread throughout the wilder areas of the country, the villas are no longer exclusive destinations but nevertheless still keep their rustic appeal. They have been introduced into the tourism circuit and can host visitors who wish to spend a night under the roofs that in the past have stared down on the likes of Nicole Kidman and King Juan Carlos of Spain.

Despite being a European capital, Bucharest can boast only two or three organic food stores, while Romania exports eco products heavily. The offer is complemented by hypermarkets and supermarkets which reserve a few shelves for the eco customer. While players seem to agree that eco food can be up to 200 percent more expensive, addressing a wealthier, more informed customer who embraces "green values," they say it ultimately pays off since the health benefits are inestimable. They also promise to open at least two supermarkets with organic products, and most likely a restaurant.

Bacau local authorities will organize on June 12 a tender to lease Bacau airport to a private investor for 35 years. The requirements are for the investor to put EUR 44 million into airport modernization works. Radu Bondar, Bacau airport GM, told Business Review that four airlines had wanted to transit the local airport but were refused due to the lack of modernization investment. There are currently five players in the final race, of which three are Romanian.

Green energy and energy efficiency projects have piqued the interest of international financial institutions like the EBRD and EIB. Moreover, since the beginning of this year, local commercial banks such as BCR, BRD, Banca Transilvania and CEC Bank have launched the first financial products dedicated exclusively to energy efficiency projects, with funds coming from agreements with the EBRD and EIB.

International Railway Systems (IRS), one of the top wagon producers in Europe, plans to pump EUR 100 million into expanding the company's operations to other countries from the Balkans, Middle East and even India in the next two years. Dan Belcea, mergers and acquisitions manager at IRS, told Business Review that one definite acquisition which will be completed by the end of the year will be a joint venture with a top local firm in Turkey.

Although the Romanian market is unbalanced because of the concentration of multiplex centers in a few large cities, cinema operators are still looking to mall developments to plot the new location for their venues. The mall operators are counting on these entertainment areas as they bring an important percentage of consumers to the mall.