EMCC European Monitoring Centre on Change

ACE Romania

Company/Organisation:
ACE Romania

Geographic Location

Country: Romania
Region: Cluj; Nord-Vest
Location of affected unit(s): Cluj (North-West region)

Company

Sector: Manufacturing
Manufacture of electrical equipment
27 - Manufacture of electrical equipment
Number Employed: 1600
Group: ACE Automotive

Employment Effects

Announcement Date: 30-05-2005
Type of Restructuring: Business expansion
Employment Effect Start: 30-05-2005
Foreseen End Date: 31-05-2006
Planned Job Creation: 700

Additional Information

The Spanish group ACE Automotive announced it will relocate all its five production units from Spain to Romania by 2011, without giving any details on the costs, the steps involved or the Romanian regions targeted for the relocation. ‘We are making this move in order to safeguard our market competitiveness. Currently, we can produce in Romania with a lower cost than in Spain, and without any deficiency in quality’, the general director of ACE Romania declared. The company has completed in April 2005 a EUR16 million investment in the construction of the first production unit in Romania, in Cluj (Cluj county, North-West region). By the end of 2005 the company employed 2,000 people, 400 more than presently. The Romanian unit in Cluj produces electrical components for Seat Altea and Seat Toledo since 2004 and is currently also working for the new Seat Leon, which will be launched in Romania by the summer 2005. In December 2005, ACE Romania announced that another plant will become operational in Dej (Cluj county, North-West region) by May 2006. ‘Some EUR 1.5 million were invested here so far and another EUR 7 million will be added soon, representing technology and equipments. The new plant will employ about 300 people and will also produce electrical components. The main contractor will be Citroen, but the group hopes it will sign new deals with Mercedes and Dacia Renault. ACE Romania anticipates some EUR 15 million sales in 2005, up from EUR 9.8 million in 2004, especially as a result of the diversification of its output. The ACE Automotive group posted a EUR 105 million turnover in 2003 and owns another seven factories: five in Spain, one in Mexico and one in Romania.