German group Bosch has stopped the project for building a new washing machine factory in Romania, a EUR 110 million investment, Ziarul Financiar reported quoting company officials.
“BSH Hausgeräte GmbH has decided not to continue its plans for the construction of a washing machine plant in Simeria until further notice. Due to the economic conditions and the strategic planning of sales based on them, the appliance manufacturer does not currently see the need for additional new production capacities in Europe. BSH has a production network of 22 factories in Europe that can adapt flexibly to changing demands,” Irenne Wagner, head of marketing at BSH Electrocasnice, told ZF.
Bosch received the construction permit for the new factory in Simeria, Hunedoara county, in November 2018 and was planning to start the construction this year. However, the German group delayed the work due to difficulties in accessing the state aid promised by the Romanian Government for this project, Ziarul Financiar reported.
The factory was supposed to start production in 2021 with a capacity of one million units per year. It would have employed 700 people.
Bosch group recorded consolidated sales of RON 2.1 billion (EUR 452 million) in Romania, up by almost 9% compared to 2017. It invested some RON 555 million (EUR 120 mln) in 2018, especially in developing the production units for mobility solutions in Cluj and Blaj.
Bosch has been present in Romania for 25 years, being one of the biggest foreign investors in the country. The group reached 7,800 employees in Romania at the end of 2018, up by 19% compared to end-2017.