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CHINESE BUSINESS IN ROMANIA

Romania is a EU member-state since 2007. A large market itself, it is situated in the

SE Eastern part of Europe, with direct access to major emerging markets in the

region such as Ukraine, Poland, Turkey, Russia.

A – INVESTMENTS

Chinese investments in Romania expected to grow

Following a meeting with the Chinese Trade Minister in October 2011, the Romania’s

Economy Minister declared that the Chinese investments in Romania will grow significantly

during the following period. According to the Romania’s Economy Ministry, the Chinese

Government has a high interest in investing in Romania, on condition the projects are

feasible and profitable for both sides.

China’s Huawei intends to invest 200 million EUR in Romania by 2014

The Chinese IT&C equipment producer Huawei intends to invest 200 million EUR in

Romania by 2014, according to the company’s investment plans presented to the Romanian

Minister of Economy. The investments will include mainly a design centre and a national

optic fiber networking in partnership with the power grid operator Transelectrica. Huawei

entered the Romanian market in 2004. Huawei Romania registered a turnover of 69.2 million

EUR in 2010, up by 140% compared to the previous year.


China Gezhouba Group interested in hydro power plant project in Romania

The Chinese company China Gezhouba Group International Engineering, with activities in

transport infrastructure, energy and tourism, expressed its intent to invest in the hydro

power plant project in Tarnita city in Romania.

The construction of the hydroelectric power plant in Tarnita is estimated at over one billion

EUR. The construction works will take between five to eight years. The Hidroelectrica’s

representatives estimate that over 4,000 jobs will be created in the two phases of the

construction.

ZTE plans to produce digital TV signal reception equipment in Romania

The Chinese telecommunications equipment manufacturer ZTE plans to open a production

line for digital terrestrial TV signal reception in Romania, according to the Romanian

Ministry of Communications. The company intends to expand its investments in Romania,

in the information and communications technology segment. The Chinese company plans to

open also a training center in Romania, with total investments estimated at some 55 million

EUR.

ZTE also expressed its interest to take over the Nokia’s factory in Romania, once the plant

will be shut down, according to the representatives of the Cluj County Council. Nokia will

have the final decision on which company will take its place in the industrial park at Jucu,

according to the contract signed with the Cluj County Council. Nokia announced it will shut

down the factory in Romania by the end of 2011. ZTE has been active in Romania since

2003.

China Nuclear Power Engineering and BKB South-Korea interested in Cernavoda

nuclear project

Soon after the Chinese company China Nuclear Power Engineering showed interest in the

nuclear energy project Cernavoda in Romania, the South-Korean company BKB Co. Ltd.

stated its interest in investing in the planned new nuclear reactors, according to Romania’s

Economy Ministry.

The works on this project should start in 2013 and be finalised in August 2019. The

Cernavoda 3 and 4 reactors project is estimated at around four billion EUR. The state owns

85% in the project, through Nuclearelectrica. After a private investor will be attracted in the

project, the state’s stake will diminish to 40%. Romania currently has two nuclear reactors in

Cernavoda, each with an installed capacity of 720 MW. The two new reactors should bring

an annual energy supply of 11 TWh to Romania’s power grid.


Chinese investors interested in agriculture projects in Romania

A group of Chinese investors, representing big commercial companies, vegetable and fruit

processors, fruit, vegetable and wine growers from the Anhui Province, want to buy or lease

croplands in southern Romania and grow and trade vegetables and fruits.

The respective Chinese investors visited southern farming areas in Romania to find out

investment opportunities in the agriculture and the food industry, particularly in the

vegetable and fruit sector. The Chinese investors want to make investments in the whole

production chain from growing to processing and selling.

China National Agricultural Group interested in Siret - Baragan channel

The Chinese company China National Agricultural Group Corporation showed interest in

building the Siret - Baragan channel in Romania, according to the Romanian Minister of

Economy.

B – CHINESE TRADE WITH ROMANIA

The value of the imports in Romania from China recorded an increase by some 28% in 2010

compared to 2009, reaching approx. 3.4 billion USD. The main imported products were the

transport machinery and equipment. The evolution of the imports in Romania from China,

during the period 2006 – 2010, is presented below.

Dynamics of imports in Romania from China

0

1

2

3

4

5

2006 2007 2008 2009 2010

bill

ion U

SD

Source: Romanian Center for Trade and Investment


The value of the Romanian exports to China recorded approx. 410 million USD in 2010, up

by some 38% compared to 2009. The main products exported from Romania to China

included crude materials (skins, raw rubber, textile fibres etc), transport machinery and

equipment. The evolution of the Romanian exports to China, during the period 2006 – 2010,

is presented below.

Dynamics of Romanian exports to China

0

100

200

300

400

500

2006 2007 2008 2009 2010

mill

ion U

SD

Source: Romanian Center for Trade and Investment

C – MAIN CHINESE COMPANIES IN ROMANIA

China is Romania’s main invetsments partner from Asia.

A total of some 10,000 companies with Chinese capital are currently registered in Romania,

out of which some 2,300 companies were active on September 2010. The total value of the

subscribed capital is of 383 million USD.

During the period 1991 – 2009, the Chinese investments in Romania accounted some 700

million EUR. In 2010, the Chinese investments in Romania accounted 17.7 million EUR,

out of which approx. 0.7 million EUR as share capital for setting-up some 300 companies

and approx. 17 million EUR as share capital increase for existing companies.

The Chinese companies set up in the Romanian market have a total of approx. 6,600

employees.


Examples of some of the main Chinese companies in Romania are presented below.

China Tobacco International Europe Company

China Tobacco International Europe Company SRL was set up in 1997. The company has a

tobacco production plant located in the Buzau county (south-western region of Romania).

China Tobacco International Europe Company made investments of some 40 million EUR

in Romania. The company is the main Chinese investor on the Romanian market. In 2010,

the company had some 100 employees. The evolution of the company’s turnover during the

period 2008 – 2010 is presented below.

Turnover dynamics - China Tobacco

International Europe Company SRL

0

5

10

15

20

2008 2009 2010

mill

ion U

SD

Source: Ministry of Public Finances

Eurosport DHS

Eurosport DHS SA was set up in 2004. The company produces bicycles in a plant located in

the Hunedoara county (western region of Romania). Eurosport DHS made investments of

some 20 million EUR in Romania.

In 2010, the company recorded a net profit of 0.5 million USD and approx. 250 employees.

In 2010 Eurosport DHS recorded a turnover growth of approx. 20% compared to 2009.

The evolution of the company’s turnover during the period 2008 – 2010 is presented below.


Turnover dynamics - Eurosport DHS SA

0

10

20

30

40

50

2008 2009 2010

mill

ion U

SD


Ricky Impex

Ricky Impex SRL was set up in 2002. The company produces bicycles and scooters in

Ialomita county (southern region of Romania). The company invested in Romania some 15

million EUR. In 2010, the company had approx. 60 employees. The evolution of the

company’s turnover during the period 2008 – 2010 is presented below.

Turnover dynamics - Ricky Impex SRL

0

4

8

12

16

20

2008 2009 2010

mill

ion U

SD



This demo document is produced by FRD Center Market Entry Services –

www.frdcenter.ro - a privately owned market entry consulting firm based in Romania.

FRD Center offers tailor-made market intelligence, B2B matchmaking and market access

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- trade missions, business itineraries, inward buyer missions

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Disclaimer:

Whilst every care is taken in compiling this report, no responsibility is taken for errors or omissions. FRD

Center guarantees that this information, collected and generated, has been operated in a professional manner

and best efforts were applied with a view to offering accurate and complete results. However, FRD Center will

not be held liable for any damage or loss resulting from the use of the information contained herein.

Sources consulted for this report: business mass media, the companies, official sources

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Contact: Jackie Bojor, Director

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