
How to take advantage of the Opportunities in the Food Processing Industry in Emerging Europe? Contact the FRD Center with your specific request for local assistance and market entry services.
How to take advantage of the Opportunities in the Food Processing Industry in Emerging Europe? Contact the FRD Center with your specific request for local assistance and market entry services.
Are you interested to learn more about the opportunities in the East European Circular Market? Who are the main players and decision makers?
What are the market expansion and investment opportunities up-dates regarding the Romanian market? Here is the latest FRD Center analysis on the Opportunities for Market Expansion, Trade and Investment in Romania.
Are you looking for opportunities in the Romanian Building Sector? Contact the FRD Center team at email: europa@frdcenter.ro
How to find and select reliable manufacturing partners and new suppliers in Romania and Eastern Europe? How to analyse their capabilities, the technologies they use and their offering? New suppliers search in Emerging Europe with the support and local assistance of the FRD Center team.
How to obtain Off-market Deal Sourcing for Crossborder Acquisitions in Romania and the Region?
Are you an International Buyer looking to acquire a Local Business in Romania and the Region? Do you need to identify off-market deals for your crossborder acquisition? Contact the FRD Center team at email: europa@frdcenter.ro
Perhaps the market entry consulting firm, FRD Center, can be of assistance to you with strategic business search and selection services and off-market deal sourcing.
Are you looking for manufacturing partners and new suppliers in Romania and Eastern Europe? Perhaps the FRD Center team can be of assistance to you. Email us at europa@frdcenter.ro with your own requirements for local new suppliers and strategic partners for outsourcing your manufacturing.
How to reach out Decision Makers in Engineering and Industrial Manufacturing in Emerging Europe? Perhaps the FRD Center can be of assistance to you. For local support in reaching out to the Decision Makers in such local companies email us at europa@frdcenter.ro
The FRD Center has been briefly researching this sector and has generated a “demo” report available for free download at the link https://www.frdcenter.ro/wp-content/uploads/2023/01/Hydrogen-production-in-Romania-FRD-Center-demo-report.pdf
Perhaps the FRD Center team can add value to your efforts with strategic business introductions in the Romanian industrial manufacturing, engineering, energy, building-assembly, metal constructions, steel works etc.
Email us at europa@frdcenter.ro and consult the link https://market-entry-romania.blogspot.com/2022/10/strategic-business-introductions-in.html
Topics in this FRD Center analysis are:
1. Why Romania?
2. Development plans
3. Players
4. Institutions
5. Legislation
6. Foreign collaboration
7. Events and communication
8. Investors and investments
It is considered that, once this cheap, competitive hydrogen from renewable energy has been produced, Romania can benefit from its huge gas transmission and distribution network. This is also an extremely powerful card for Romania, not only at the regional level, but at the European level.
Furthermore, in Romania there are all the hydrogen consumption applications where this energy can be capitalised. Romania has refineries where it can be exploited, also used in the production of steel, in the chemical industry, especially in the production of ammonia and fertilizers. Hydrogen can be used in the transport industry, especially heavy transport, in maritime transport, civil aviation.
Beyond the European funding, the legislation will bring money – investments of hundreds of billions of euros – from multiple sources, including banking, investment funds etc. to the hydrogen area.
For more details consult the FRD Center “demo” report HYDROGEN PRODUCTION IN ROMANIA available for free download at the link https://www.frdcenter.ro/wp-content/uploads/2023/01/Hydrogen-production-in-Romania-FRD-Center-demo-report.pdf
In October 2022, The Romanian Ministry of Energy has started the process of developing the “National Hydrogen Strategy and Action Plan”, part of the National Recovery and Resilience Plan (PNRR)
Relevant decision makers consider that the initiation of the process of developing the “National Strategy for Hydrogen”, part of the National Recovery and Resilience Plan (PNRR), is an important step for the creation of a functional hydrogen market in Romania and for the development of investments in this field.
Hydrogen production in Romania is a topic of great interest in the current context of decarbonisation of heavy industry or road freight transport.
As part of the reform no. 4 of the National Recovery and Resilience Plan (NRRP), Romania has to develop by the end of March 2023 a national hydrogen strategy and a strategic action plan with policies to guide, coordinate and mobilise public and private investments in the production, storage, transport and use of hydrogen.
Romania envisages an important role for the renewable (green) hydrogen in its future energy system. According to the Integrated National Energy and Climate Plan 2021 – 2030, Romania could opt for the use of hydrogen in industrial processes, considering that the replacement of the natural gas with hydrogen from renewable sources would result in significant decarbonisation and it is in line with the RepowerEU plan to reduce the use of fossil fuels from Russia.
For more details consult the FRD Center “demo” report HYDROGEN PRODUCTION IN ROMANIA available for free download at the link https://www.frdcenter.ro/wp-content/uploads/2023/01/Hydrogen-production-in-Romania-FRD-Center-demo-report.pdf
In June 2022, the Romanian Ministry of Energy approved a State aid scheme with the total budget of almost 150 mEUR through the NRRP to support investments in the construction of capacities for the production of renewable hydrogen via electrolysis. The scheme applies until 31 December 2023 and the maximum aid to be granted may not exceed 50 mEUR per investment project, per undertaking.
The scheme is open to micro, small, medium-sized or large enterprises active in the production of hydrogen or electricity, to administrative-territorial units, R&D national institutes in the field of energy, including associations or partnerships formed by those players.
According to the Vice President for Business Development of OMV Petrom, Romania could become a European hub of blue hydrogen as the country has gas resources, carbon storage capacities and a varied industry that can use this resource.
Perhaps the FRD Center team can add value to your efforts with strategic business introductions in the Romanian and East European energy, industrial manufacturing, IT&C, building-assembly, engineering, chemicals, agriculture, BPO and outsourcing, metal constructions, steel works etc.
Email us at europa@frdcenter.ro and consult this link for more details: https://market-entry-romania.blogspot.com/2022/10/opportunity-alert-facilitation-of.html
ICSI – the National Research and Development Institute for Cryogenic and Isotopic Technologies – https://www.icsi.ro/ – operates under the coordination of the Ministry of Research, Innovation and Digitalization. It includes a department – ICSI Energy – focused to develop, implement and disseminate hydrogen-based technologies in order to achieve a “hydrogen economy” in Romania.
The Intelligent Energy Association – https://asociatiaenergiainteligenta.ro/ – brings together professionals from the hydrogen, natural gas, electricity and energy efficiency fields in Romania. In October 2022, it participated at a meeting with the Ministry of Energy to prepare the national hydrogen strategy.
Part of the KMG International Group, Rompetrol Rafinare SA – https://rompetrol-rafinare.kmginternational.com/ – owns the Petromidia and Vega refineries. The Petromidia refinery has a hydrogen cracking plant. Rompetrol Rafinare targets a production of almost 4 million tonnes of fuels in 2022, out of over 5 million tonnes of raw materials targeted for processing. The firm recorded a net turnover of around 2.5 bn EUR in 2021.
A NATO member-state since 2004 and a full EU member since 2007, Romania is the second largest market in Central, Southern and Eastern Europe, after Poland.
It has a strong industrial manufacturing sector, oil & gas industry, agriculture, superb IT & software development. It has several maritime ports, considerable logistic sector and strong ship-building industry.
For more details go to the link: https://market-entry-romania.blogspot.com/2022/11/why-would-you-choose-to-relocate-or-to.html
According to the FRD Center analysis based on official data published by BNR (The National Bank of Romania), the foreign direct investments (FDI) in Romania went up 46.47% in the first eight months of 2022, compared to the same period of 2021, reaching 6.474 billion EUR.
As for the GDP, it increased y-t-y by 5.7% in the first semester of 2022. It is expected to grow by 3.5% in 2022, according to the National Commission for Strategy and Prognosis.
Since the war in Ukraine, several international players have been relocating their manufacturing sites to Romania. The latest to do so is the Finnish company Nokian Tyres which will invest 650 mEUR to construct a vehicle tire factory in Romania with the annual manufacturing capacity of 6 million tires.
As it results from the FRD Center analysis, in the first eight months of 2022 compared to the same period of the previous year, the turnover in the manufacturing industry in Romania increased by 23.6% in nominal terms, while the new orders in this sector rose by 18.9%.
In regards to the manufacture of food products in Romania, according to the FRD Center analysis, in the first eight months of 2022 it recorded a y-t-y growth as gross series of 4.4% while the manufacture of fabricated metal products, except machinery and equipment increased by 3.3%.
The Romanian manufacture of basic pharmaceutical products and pharmaceutical preparations increased by 4.6%.
The volume of the construction works in Romania increased by 6.6% as gross series in the first eight months of 2022 compared to the same period of 2021, as it results from the FRD Center analysis.
Romania will benefit of 29.18 bn EUR European funding through the National Recovery and Resilience Plan (NRRP).
One of the sectors to receive funding through the NRRP is the Romanian microelectronics sector. They will receive 500 mEUR to develop a strategic program of research and production of microchips and semiconductors in Romania.
Also through the NRRP, Romania receives 1.2 bn EUR for waste management projects and must implement the planned projects by 2026. One priority is the digitization of the waste management sector.
Romania has qualified professionals with Industry 4.0 skills and a developed IT infrastructure allowing the implementation of the latest technologies in the sector of the autonomous mobile robots.
Young Romanians participate at international competitions and win awards, such as the Delta Force team from the National High School of Informatics in Arad that won the big competition in Houston, USA in April 2022.
Romania ranks 10th among 132 countries for the ICT services exports (% total trade). It is one of the leading countries in the region in terms of BPO, ITO and SSC.
Major global companies opened centres in Romania for R&D, business services, custom software development etc.
In respect to agriculture, Romania is one of the largest players in Europe, with the utilised total agricultural surface of around 14 million hectares.
In the 2021-2022 commercial year Romania was the largest maize exporter of the EU and the second-biggest wheat exporter of the EU.
Furthermore, Romania was the largest sunflower producer in the EU in 2021.
Within the National Programme for the rehabilitation of the irrigation infrastructure, the Romanian Government approved in August 2022 allocations from the national budget of 1.5 bn EUR by 2027, with the target is to increase the irrigated surface of Romania from 1.8 million hectares to 2.6 million hectares.
According to Eurostat, with a production of 2.5 million of bicycles in 2021, Romania is the second largest manufacturer of bicycles in the EU.
According to the FRD Center analysis, the sectors of interest are:
1 – DIGITALIZATION IN ECONOMY: agriculture, waste management
2 – INDUSTRY 4.0 AND ROBOTICS: players, investments and developments
3 – INDUSTRIAL MANUFACTURING: players, investments and developments
4 – AGRICULTURAL TECHNOLOGY AND IRRIGATION: imports, investments and developments
5 – OIL & GAS: extraction, production, export, engineering, players examples
6 – BPO AND SOFTWARE DEVELOPMENT OUTSOURCING: players, investments and developments
7 – MICROELECTRONICS AND MICROCHIP PRODUCTION: players, investments and developments
For more details consult the link https://www.frdcenter.ro/wp-content/uploads/2022/11/MARKET-EXPANSION-TRADE-INVESTMENT-OPPS-IN-ROMANIA-2022-FRD-Center.pdf
Agriculture represents one of the most important economic sectors in Romania and it offers significant digitalization opportunities. The agricultural sector has potential to grow through the digitalization of certain processes and the implementation of technology in machinery.
Romania receives 1.2 bn EUR for waste management projects through the National Recovery and Resilience Plan and must implement the planned projects by 2026. Approximately 14,000 digitized underground ecological islands are expected to be installed for the selective collection of household or packaging waste, which can be monitored by authorities from a distance.
For more details about the Romanian digitalization development consult the link https://www.frdcenter.ro/wp-content/uploads/2022/11/MARKET-EXPANSION-TRADE-INVESTMENT-OPPS-IN-ROMANIA-2022-FRD-Center.pdf
Regarding the healthcare system digitalization, Romania targets to strengthen the telemedicine, to improve the digital infrastructure of the healthcare units, the mobile patient monitoring systems and the technical assistance for the development and integration of the digital health solutions.
The Ministry of Health announced in October 2022 investments of over 200 mEUR for the hospitals’ digitalization in Romania through the National Recovery and Resilience Plan.
The Romanian industry benefits from qualified professionals with Industry 4.0 skills. The major universities in Romania, such as the University Politehnica of Bucharest and the Technical University of Cluj Napoca, have faculties of industrial engineering and robotics. Romanians participated at various international competitions and won awards. One example is the Delta Force team from the National High School of Informatics in Arad that won the big competition in Houston, USA in April 2022.
For more details about the Romanian Industry 4.0 development consult the link https://www.frdcenter.ro/wp-content/uploads/2022/11/MARKET-EXPANSION-TRADE-INVESTMENT-OPPS-IN-ROMANIA-2022-FRD-Center.pdf
In spite of the problems generated by the energy prices in Europe, the manufacturing industry in Romania increased by 0.2% as gross series in H1 2022 compared to H1 2021, according to the National Institute of Statistics.
According to the National Institute of Statistics, the turnover in the manufacturing industry in Romania increased by 23.6%, in nominal terms, in the first eight months of 2022 compared to the same period of 2021. Furthermore, the new orders in the manufacturing industry increased by 18.9% in the first eight months of 2022 compared to the same period of the previous year.
Within the National Programme for the rehabilitation of the irrigation infrastructure, the Romanian Government approved in August 2022 allocations from the national budget of 1.5 bn EUR by 2027. The target is to increase the irrigated surface of Romania from 1.8 million hectares to 2.6 million hectares.
Romania has a history of over 160 years in the crude oil production and refining. Currently most of the fields are matured but the recent gas discoveries in the deep waters of the Black Sea indicate significant potential.
There are various companies specialised in engineering services in the oil and gas industry on the domestic market, both with Romanian and foreign ownership. Some relevant examples are: CIS Gaz, Saipem, Adrem Engineering, Raptronic Process Engineering, Roconsult Tech etc.
The Romanian software outsourcing is attractive for players looking for a convenient geographic location in Eastern Europe, growing economy, stable political and banking systems, developed IT sector, extensive talent pool, tech expertise, language skills and high-quality services at reasonable costs.
The Romanian authorities target to develop a national ecosystem in microelectronics that includes large companies, SMEs, national development centres and universities to be able to provide the necessary products for the automotive industry and other sectors of the economy.
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