This year alone, four companies on the fast moving consumer goods (FMCG) segment - edible oil producer Bunge, consumer goods producer Colgate-Palmolive, foodstuffs producers Orkla Foods and Nestle- closed local factories.
“Production in Romania is not that profitable anymore. Labor market is very poor, there is no workforce available and demands are high. Plus, taxes for raw materials in the food industry are increasing,” according to Romalimenta employers union President, Sorin Minea, for Business Standard.
Labor costs have the highest ration in the total production costs, around 40 percent, according to representatives of HR company Lugera&Makler’s local subsidiary. “Generally, the reasons of foreign companies leaving Romania are lack of labor force and costs much higher compared to other countries,” Lugera&Makler’s Managing Partner, Cristina Savuica, said.
The latest company to partially give up production in Romania is Nestle, world’s largest sweets and beverages producer, which announced it would transfer its ice cream production unit from Romania to Bulgaria, because the local factory had no available space for expansion.
