Skip Ribbon Commands
Skip to main content

News Release

Bucharest

Romania is still attractive for opening new factories

Jones Lang LaSalle concludes new industrial deals


Although Nokia has announced its’ exit from the market, Romania is still attractive for investors, at least from the agriculture’s point of view or its light industry potential. A proof in this direction is the fact that other multinational companies have opened or will open new production units and facilities in Romania, also creating new employment opportunities.

The Toro Company, American company specializing in turf maintenance equipment and precision irrigation systems, with 1.7 billion USD turnover in 2010 in their 80 countries network, was assisted by the  industrial and logistics department of Jones Lang LaSalle to buy land for their production unit in Ploiesti West Park.

Marius Scuta, head of Industrial Agency, states: "The Toro Company's initial expansion plan was renting a location in order to create a hub of operations in Eastern Europe. Jones Lang LaSalle advised Toro on suitable property options and about the investment support package offered by the Romanian government, following which Toro decided to change strategy and buy 3.5 ha of land in Ploiesti West Park, developed by Alinso Group. Recently, Toro opened its new 12,500 m2 plant, producing micro-irrigation systems, that will also create around 100 new jobs. The 20 million investment aims also to support the agriculture industry in the region. The Toro Company chose this park due to its strategic location and due to the flexibility proven by the owner, in terms of commercial offer, given their experience in working with other American companies (Unilever, Lufkin Industries) and the specific needs of such multinational companies. "

“We found Jones Lang LaSalle to be a valuable partner in our search for a new plant location in Eastern Europe given their strong presence in the countries we were researching. Locally, we found the team to be very knowledgeable of the industrial and logistics market throughout Romania,” commented Kirt Williams, General Manager at Toro.

In addition to the agency services, Jones Lang LaSalle also offered Project and Cost Management  services for the execution phase of the Toro production unit. Cezar Florea, coordinator of the Project Management Department, declared: "The challenge of this project was meeting the tight execution deadline of five months, providing integrated services, along with other departments within the company. Part of the total investment was supported by the Romanian state, which was one important factor for Toro in choosing Romania as location for this facility."

"The new investments in the production sector, that aim to be near Bucharest, will be placed in satellite cities such as Ploiesti, Pitesti etc., due to lower labor costs, to the completion of significant infrastructure changes, and  to the strategic role of Romania within the European logistics circuit. Ploiesti is targeted also by American suppliers to the oil industry (such as Lufkin Industries, Cameron) and to the automotive sector, that  continue to invest in building their own production facilities", says  Irina Iliescu, Senior Consultant within the Industrial Agency department of Jones Lang LaSalle.

The Industrial & Logistics department of Jones Lang LaSalle also represented Heineken in the second quarter of this year in the disposal to GED Capital of a 4ha land and a  6,000 m2  warehouse that includes office space.