While major companies, such as Coca-Cola, Kraft, Nestle and Colgate-Palmolive are closing factories and transferring production across the border, P&G is choosing România over Poland, Turkey and Ukraine. P&G will also attract other suppliers to the region, the first already announcing an investment in the region.
Daniel Myers, Vice President of Production of the American Procter&Gamble group believes that the main reason for P&G opting for Romania is the country’s strategic position, which allows the distribution of products to Eastern Europe, the excellent evolution of the Timisoara detergent factory, and the work force. Initially the company considered building the factory in the Timisoara area or even in Bucharest, but eventually decided on Urlati, some 80 km north of Bucharest. The first phase of the investment will amount to some $50 million, with half of the products for internal use and the remainder for export, to Balkan countries. Exports will increase to some 90 percent of production, with sales to the Russian, Ukrainian, Polish and Turkish markets.
P&G is due to hire 150 persons for its Urlati unit, which is due to begin production in the spring of next year, said Myers. He added that P&G investments for Romania will not be affected by the economic crisis because the American group has a successful business in Eastern Europe and will continue to invest in production. The company’s management is expecting local business to slow due to the recession, after growth in excess of 10 percent in recent years. P&G has a 40 percent market share for hair care products, and 60 percent for one-time use products (Pampers and Always).
