NEWS In a dramatic series of events, former prime minister Adrian Nastase attempted suicide after a local court upheld his two-year prison sentence for corruption. The event quickly became a political football »page 5
ROMANIA’S PREMIERE BUSINESS WEEKLY
US INVESTMENT
June 25 - JULY 1, 2012 / VOLUME 16, NUMBER 23
AROUND USD 1 BLN OF US INVESTMENT HAS POURED INTO ROMANIA SINCE THE 1990S. THE AUTO INDUSTRY HAS RECENTLY BEEN RIDING THE WAVE AS CARMAKER FORD IS MANUFACTURING A NEW ENGINE AT ITS CRAIOVA PLANT »PAGE 8
State-owned Hidroelectrica, Romania’s largest hydro power producer, has entered insolvency due to lack of liquidity. This could lead to the scrapping of some of the murky energy contracts the IMF estimates are costing up to EUR 220 million in lost revenue yearly »page 10
HIDROELECTRICA SLIPS INTO FINANCIAL WHIRLWIND NEWS
NEWS
INTERVIEW
FILM
Orange alert
Foot on the gas
Beck to the future
Thrill of the hunt
The operator says its investment in local network expansion might be affected by the sum it will have to pay for 4G licenses » page 4
Industrial producer Linde Gas has opened a new separation unit in Galati with a EUR 100 million investment » page 4
Alfred Michael Beck, managing partner of AMB Holding, tells BR about planned projects in agriculture, energy and real estate » page 13
Tense and efficient Norwegian thriller Headhunters sees a corrupt corporate recruiter get his comeuppance » page 14
www.business-review.ro Business Review | June 25 - July 1, 2012
NEWS 3
NEWS in brief Photos: A.R.C.E.N. (The Romanian Association for Culture, Education and Normality) / Alberto Grosescu
IMAGES of the week Bowtie protest Around 500 people wearing bowties gathered last week to protest the recent change that saw the Romanian Cultural Institute (ICR) being transferred from under the authority of the Romanian Presidency to that of the Senate, a move which many fear will politicize it. The ICR, a public institution established in 2003, works to raise the profile of Romanian culture around the world
FMCG
MACRO
Burger King ‘meats’ its demise on local market after entering insolvency
Romania, 6th most attractive country for investments in Europe, says E&Y
Atlantic Restaurant System, the local owner of the Burger King franchise, will close the remaining two Burger King restaurants in Bucharest this week, according to ZF. Three other restaurants – located in Baneasa Shopping City, Plaza Romania and Bucuresti Mall – were closed last week. The company entered insolvency on June 8 at the request of the Liberty Center shopping mall. The Burger King brand was brought to Romania four years ago by local businessmen Eli Davidai and Marius Nasta.
Romania will be the sixth most attractive country for investments in Europe in the next three years, according to 840 executives surveyed by Ernst & Young in the 2012 European Attractiveness report. Business leaders across the world find Romania more attractive than the Czech Republic, Switzerland, Netherlands, Italy, Spain or Sweden, the firm discovered. Romania has good GDP growth, compared to the European average, and valuable human capital, the study shows, noting that more and more investors are attracted by the renewables sector. Overall, in 2011, CEE economies lead in process industries. Romania, Serbia, Slovakia and the Czech Republic attracted 53 percent of new automotive jobs. These countries have attracted big projects because they are cost-competitive and close to Germany, home to many key industrial customers. Business services and software sectors remain the biggest recipients of FDI projects in Europe.
HR Companies spend EUR 500 a year on training a manager Companies in Romania are investing a yearly average of EUR 478 in training a manager and nearly half as much (EUR 265) in training an employee, concluded the survey Trends on the Training and Development Market in 2012, carried out by EXEC-EDU. Romanian managers continue to prefer traditional training to other forms of learning such as e-learning, coaching or mentoring. Top managers resort mainly to leadership classes and coaching while middle managers seek to improve relations and communication within the team.
State wants public sector salary cap The executive is currently leading talks over a bill that would cap the salaries of staff working for state-owned companies, according to Mediafax newswire. In related developments, Prime Minister Victor Ponta recently announced that the government is looking at adopting an ad-
ditional 16 percent tax on sums that exceed RON 4,500 per month for pensions and salaries. This could be applied starting next year, only in the public sector.
ONLINE Google Traffic available in Romania Google Maps has expanded coverage of the service which allows users to see traffic conditions in real time to seven new countries including Romania. The others are Belarus, Estonia, Latvia, Mexico, Peru and South Africa. Besides traffic and weather conditions, the service also offers drivers an estimated journey time. Users can access the new service by visiting http://maps.google.ro/ and clicking on the Traffic button in the widget placed in the upper right part of the map.
POLITICS Sorin Ovidiu Vintu sentenced to one year in jail Businessman Sorin Ovidiu Vintu has had a sentence of one year of imprisonment for blackmail upheld by the Bucharest Court of Appeal. His accomplice Ilie Cezar also received five months’ imprisonment for the same crime. Between March and April last year, the two allegedly forced Sebastian Ghita to choose between paying EUR 150,000 or agreeing to tear up a contract, under threats to harm him and his family as well as smear his reputation. Vintu and Ghita were locked in a battle
over the Realitatea Media group at the time.
RETAIL Hornbach has spent EUR 148 mln locally over past 5 years Since entering the Romanian market five years ago, German DIY retailer Hornbach has invested EUR 145 million in opening five stores and its local headquarters, and another EUR 3.3 million in employee training programs, according to company representatives. Hornbach recently announced that it had begun work on its fifth local store, in Timisoara. The outlet requires a EUR 30 million investment.
TELECOM Orange and BRD test NFC in Romania Orange Romania and BRD - Groupe Societe Generale have launched a pilot project to test the near field communication (NFC) solution in Romania, which allows mobile phone users to make payments using their handsets. Over 100 people who have a bank account at BRD have received Blackberry handsets and SIMs with NFC capabilities which can be used to pay for products and services. BRD has installed over 2,000 points of sale compatible with NFC technology around the country at supermarkets, restaurants, fast food outlets, pharmacies and subway stations.
www.business-review.ro Business Review | June 25 - July 1, 2012
4 NEWS
ENERGY
TELECOM
Orange completes 3G coverage in Romania
Jean-Francois Fallacher, CEO of Orange
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range Romania’s local investments this year will be in the same range as the figure announced for 2011, EUR 110 million, said company officials. Last year, the operator voiced its Conquest 2015 strategy to invest between EUR 500 and 600 million in Romania by 2015. According to Jean-Francois Fallacher, CEO of Orange Romania, the sums that Orange will pay for the licenses to be sold in the telecom tender this summer were not included in this five-year step investment. Over the past year, the firm has injected EUR 110 million mainly into expanding its network in rural areas as well as modernizing voice and data services, taking its 3G coverage from 55 percent of the Ro-
manian population in 2011 to 98 percent in 2012. At the moment, Orange provides nationally speeds of 14.4 Mbps in rural and urban areas, 21.6 Mbps in 21 significant towns and 43.2 Mbps in the five biggest cities, Bucharest, Iasi, Timisoara, Constanta and Cluj. “I believe we have contributed to reducing the digital divide in Romania with the completion of this program,” said Fallacher. During the program, the company upgraded 1,903 radio stations from 2G to 3G. On average, 40 sites were modernized every week. “We started with Transylvania, we continued with Moldova and Banat and then with the southern part of the country,” said Madalina Suceveanu, chief technical officer (CTO) of Orange Romania. “Some of the equipment that was replaced had been installed 15 years ago when the Orange network was launched.” According to company officials, in the first half of the year Orange saw a 182 percent growth in data traffic in rural areas compared to the period prior to the modernization of the network. Apart from the investment in the network, the operator has also invested in its outlet network, but “not to the same magnitude,” said Fallacher. LTE 4G is a new technology that will provide customers with much higher speeds of 100 Mbps. “This will be the third layer of technology in our network,”
said the CEO. Fallacher added that the Romanian market was “ready for LTE,” but “the question is how fast it will be adopted” since this is contingent on various factors, mainly the spectrum that the authorities make available and the prices operators will have to pay for it. It will also depend on clients’ appetite for speeds higher than 100 Mbps, said Fallacher. The tender that will allocate licenses for frequencies in the 800 MHz, 900 MHz, 1800 MHz and 2600 MHz ranges will take place in August and the final results will be announced in October at the latest, according to the Romanian telecom authority. “Depending on the amount we must pay for the licenses, the money will come either from Orange Romania or from the group. Most likely, it will come from the group because from what I have seen the sums will be extremely high. I have repeatedly passed on to the authorities the message that, while we may have very good resources, they are not unlimited, and the sum that will be spent on the licenses is money that will not be spent on expanding the network as fast as we would have wished. So, as in any country, there is a trade-off between the price of the licenses and the speed at which the operators will invest in their network in that country,” said Fallacher. ∫ Otilia Haraga
Linde opens new air separation unit in Galati
I
ndustrial gas producer Linde Gaz Romania inaugurated last week a new separation unit at ArcelorMittal Galati steel company, following an investment of over EUR 100 million that was started in 2008. The unit has a capacity of over 2,000 tons of oxygen per day and also supplies large amounts of nitrogen and argon for steel production. Linde signed a long-term on-site supply agreement for industrial gases with ArcelorMittal Galati in 2008 that runs for 18 years. Last year, the contract between the two companies was worth EUR 20 million, as ArcelorMittal produced 2 million tons of steel. The Linde unit can accommodate a 6 million ton steel production, but the current situation in Galati is not looking too bright. “Before 2008 Turkey was a net importer of flat steel products. Since 2011 it has become a net exporter. So, we are now in a much more unreliable world, with a lot more competition. This is why we are now fighting every day to sell around 2 million tons per year,” said Bruno Ribo, CEO of ArcelorMittal Galati. The investment in Galati included the refurbishment of the existing gas facilities, as well as the demolition of the equipment and facilities of ArcelorMittal. ∫ Ovidiu Posirca
www.business-review.ro Business Review | June 25 - July 1, 2012
NEWS 5
POLITICS PARTNER CONTENT
Ex-PM Nastase attempts suicide after court upholds jail term
Former PM Adrian Nastase
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omania’s former PM Adrian Nastase tried to kill himself on Wednesday night, a few hours after having his two-year jail sentence for corruption upheld by the court. Media reports said Nastase, 62, had attempted suicide at his home, by shooting himself in the head, after police officers arrived to arrest him and take him to jail. One of the officers saw what was happening and rushed to seize the gun. This move may have saved the life of the disgraced politician, who was rushed to the hospital with a neck wound. Nastase, who also suffers from thyroid problems, diabetes, and high blood pressure, according to doctors, underwent surgery at the Floreasca Hospital. The prog-
nosis is good, and he continues to undergo treatment, according to Serban Bradisteanu, head of the team that operated upon the former PM. Nastase will be receiving psychological counseling and will remain in hospital for about two weeks. On Friday, the doctor said he would not be giving any further details on the former PM’s condition at the request of the Nastase family. On the night of the drama PM Victor Ponta went to the Floreasca Emergency Hospital, to check on his political colleague. Other high-ranking PSD members also attended. Meanwhile, President Traian Basescu also called the ambulance service to enquire about his condition. Nastase was convicted of the embezzlement of EUR 1.5 million of funds to finance his presidential run-off campaign in 2004. He served as PM between 2000 and 2004 and head of the PSD between 2000 and 2005. The case made the pages of the international media. “For the first time since the end of communism, Romania has proved that it can send powerful politicians behind the bars, no matter how much money or power they have. This is something Romanians have been waiting for since the 1989 revolution,” wrote The Economist. ∫ Ovidiu Posirca
POLITICS
PM Victor Ponta in plagiarism row
T
he Romanian prime minister, Victor Ponta, is at the center of a plagiarism scandal after the British magazine Nature ran a story alleging the recently appointed PM had copied large sections of his 2003 PhD thesis in law from previous publications, without proper attribution. To combat the charges, PSD leader Ponta made an application to the National Authority of Scientific Research for an analysis of his thesis, on the functioning of the International Criminal Court, which is still in progress. According to Nature magazine, if the
charges are substantiated, they could spark public pressure for Ponta to resign. The magazine article, written by journalist Quirin Schiermeier, suggests that “more than half of Ponta’s 432-page, Romanian-language thesis on the functioning of the International Criminal Court consists of duplicated text. Moreover, the thesis was republished with very minor amendments as a Romanian-language book in 2004, and also forms the basis of a 2010 book on liability in international humanitarian law.” ∫ Oana Vasiliu
FMCG
Food distributor Alfredo plans EUR 5 million investment in logistics center
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which covers the import and distribution of frozen products including fish, and Alfredo Fresh which is best known for the import and distribution of exotic fruit. Last year only 5 percent of the volumes of fruit and vegetables sold by Alfredo Fresh were local products, whereas the target for this year is 10 percent. “Unfortunately local production is well below the European level. Romanian farmers don’t understand that production alone is not enough. They have to meet certain standards related to the assortment, packaging and classification of their products in order to sell them to large retail networks,” said Nistor, adding that this is slowly starting to change. ∫ Simona Bazavan
In the last 45 days I have traveled to 4 countries and exhibited in 2 of the most important Renewable Energy exhibitions in Europe, presenting the Romanian market to foreign inIlias Papageorgiadis vestors, banks and financial institutions etc. As the interest for the local market is really very strong, there are tens of questions asked during hundreds of discussions. People asking are either international professionals with a vast experience, or Romanian entrepreneurs who want to enter in the field as well. But as the market is very hot, too many amateurs have entered the segment. They also travel around, trying to promote their project or services (something fair) by saying “wonderful lies” to people, hoping that they will earn their money before they are discovered. The situation reminds me a lot of the Real Estate “golden era”, when everyone was saying everything just to make some money today (and destroy the market tomorrow). From all these lies, allow me to share with you 9 of the most wonderful (or ridiculous) ones, transmitted to foreigners or locals: 1. “The price of green certificate will always be at the maximum level, you can be sure of that. Nowadays it is around 55 – 57 Euro and if you add inflation, in a few years’ time it will be around 65 – 70. You can look on the OPCOM site for prices”. The prices are high now and they will probably remain high as long as not many projects (especially wind ones) are commissioned. Every serious company will tell you that its income projection does not include the scenario of maximum prices on the long term. 2. “As the price is at the maximum level, you will have something akin to a Feed in Tariff for many years to come”. If you want a fixed price, sign a Power Purchase Agreement or a Green Certificate Purchase Agreement with a “bankable” international trader. Having been involved in this kind of deals, I will tell you that it is much more difficult than you think and the final price is satisfactory, but has nothing to do with “fixed prices at the maximum level”. 3. “The energy is easy to sell, there is a spot market and it will double in 5 years’ time”
They just forgot to say that you also have to be an expert in arbitrage, if you don’t want to lose all your money. Let a trader do this, as all experts suggest. 4. “Financing in Romania is simple. Banks may provide you loans up to 85% of the total value of investment” Correct. They are waiting for you at the door, with a red carpet to lead you to their office. Some banks have hired famous Hollywood actresses, in order to massage you while you sign the loan contract. (Let’s be serious. There is financing in Romania, but it is not easy at all) 5. “Many international banks wait to finance projects and they can cover up to 100% of the total investment”. I also hear that (had plenty of relevant discussions), but I am waiting to see the proofs in the following months. 6. “Foreigners buy anything, even if the papers are not yet ready” Foreigners are VERY careful. They pay a lot of money for due diligence and they crosscheck every single detail. And they do very well. 7. “You can get European Grants, build your project with their money and then benefit from the certificates scheme as well. So prepare one now!” No, they also pay you money, as you gave them the pleasure of collaborating with you. The budget for this sector has been invested for some time now. 8. “Once you have the ATR, you have secured the connection to the national grid” Security comes once you pay the first installment. If not, this is just an indication. 9. “You will get your money back in 3 years’ time” Who says that is either naïve or a liar. My company (together with our collaborators) crosschecks projects before presenting them, gives solutions for EPC, facilitates PPA and GCPA and resolves tens of other problems until we consider a project to be “well done”. I guarantee you that the Romanian Renewable Energy sector is very interesting, but it has nothing to do with all these myths of “easy money”. It is worth investing in, but carefully and with attention to details. What is your opinion?
Ilias Papageorgiadis CEO MORE Green Energy www.more-group.eu ino@more-group.eu
ADVERTORIAL
omanian food distributor Alfredo plans to inject about EUR 5 million into a joint logistics platform in Afumati near Bucharest, in addition to other investments. The project will be started next year and should be completed in 2014. About half of the money will come from EU funds. The firm presently owns a factory for frozen products in Constanta, and warehouses in Bucharest, Afumati, Galati, Constanta, Bacau and Oradea. Alfredo reported sales of EUR 50 million last year and hopes to grow its business 20 percent by the end of 2012 despite the general drop in consumption, said Daniel Nistor and Cristian Darmanescu, the company’s two owners. The business was set up 20 years ago and is currently made up of two distinct companies, Alfredo Foods
The Romanian Renewable Energy sector: 9 “wonderful lies” that are spread around
www.business-review.ro Business Review | June 25 - July 1, 2012
6
Tourism players call for better collaboration between authorities and private sector Since Romania’s tourism revenues have decreased by about 16 percent over the past four years, stagnation is the best case scenario for the second semester of 2012 as the industry continues to struggle with the effects of the economic downturn and an array of unaddressed issues, argued participants at the second edition of the International Investment Forum – Focus on Tourism & Hospitality an event organized by BR last week. ∫ SIMONA BAZAVAN
All photos: George Gutu & Mihai Constantineanu
“The tourism industry is closely connected to the general state of the economy. If the economy is growing, so is this sector,” said Radu Enache, president of Romania’s Hotels Federation and one of the speakers at the event. Gabriel Antohe, analyst in the tourism and portfolio stock monitoring department of SIF Transilvania, a local financial investment company with a large tourism portfolio, confirmed that the industry is on a downward trend and so far this year it has been below expectations and below 2011’s figures. Financing remains one of the main stumbling blocks for the industry, complained participants. Banks are extremely reluctant right now to finance investments in tourism as this has become synonymous with real estate. And this view is not far from the actual situation in the field, said Enache. During the boom years a lot of heterogeneous tourism investments were made, in many cases by people who didn’t have the necessary know-how to run a hotel or a restaurant but saw real estate potential in that investment, said Enache. “There haven’t been actual investments in tourism but rather investments in buildings,” he stressed. He added that investment funds are no keener than banks to inject money into this sector due to low return rates, and EU funds aren’t necessarily a solution as they can be linked to various local interests. But even with the problem of financing put aside, it is very difficult to plan an investment that can be recovered in 10 or 15 years when the industry is dealing with a general lack of predictability, participants argued. SIF Transilvania, which owns 43 hotels through nine companies where it is majority shareholder, has invested some EUR 100 million in its hospitality assets over the past five years and another EUR 30 million will have to be injected in order to finish the projects already begun, disclosed Antohe. He stressed that it is difficult to talk about any other future investment intentions in the present context. In his opinion, the lack of a national medium- to long-term strategy has hampered the overall development of the tourism industry and has made it difficult for individual companies themselves to come up with their own development plans. Talking about financing through EU funds, Corina Martin, president of the National Association of Tourism Agencies (ANAT), said the funds available to local authorities for tourism promotion are often spent incoherently if not wasted, and fail to produce actual results due to a lack of coherence between projects and cooperation with the private sector. “There is for example the case of city halls using EU funds
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1. Razvan Pirjol, president of SKAL Club Romania; Gabriel Friptu, general director, Management Authority – Regional Operational Program; Gabriel Antohe, analyst in the tourism and portfolio stock monitoring department of SIF Transilvania; Radu Enache, president of the Romanian Hotels Federation; Tinu Sebesanu, CEO, Trend Hospitality 2. Magda Savuica, project manager, 273 Places to Visit in Romania 3. Traian Badulescu, general manager, Travel Advisor Media; Sorin Ionescu, managing partner, FiveStar Hospitality for various promotional materials such as brochures. They don’t communicate with each other, not even within the same county. Moreover, each city hall includes the tourist routes it desires and sees fit in those brochures without consulting any representatives of the private sector,” she said. She added that employers’ associations from the tourism industry are generally left out of the decision-making process by central authorities, much to the detriment of the industry. “I believe that right now, the only solution for Romanian tourism is a public-private partnership between the authorities and the private sector. In every major tourist region in Romania the associations we have set up must function better and better. City halls, together with county councils, local employers’ associations, the local ANAT, private operators and so on must work together and come up with a local tourist development and promotion strategy. Where
we have managed to make this kind of partnership work, the results are positive and obvious,” said Martin. She added that it is not normal for public workers alone to decide how the funds for promoting Romania as a tourist destination should be spent without consulting the private sector. Sorin Ionescu, managing partner at FiveStar Hospitality, supported the same idea, adding that public-private partnership is necessary to properly promote local tourist destinations. The lack of collaboration with the private sector has also led to the misuse of EU funds for hospitality training, even though the industry needs better qualified personnel, said Tinu Sebesanu, CEO of Trend Hospitality. Razvan Pirjol, president of Skal Club Romania, said that in recent years local managers have cut back on investments in training programs, blaming it on the industry’s high staff turnover and lack of loy-
alty, as many workers are ready to go elsewhere for an additional RON 100. At European level, however, demand for hospitality training programs has gone up in the last few years despite the crisis and despite the fact that this sort of education is very costly, he added. Present at the event, Gabriel Friptu, general director of the Management Authority for the Regional Operational Program, said EUR 3.7 billion of EU funds is available for Romania until 2013 through the Regional Operational Program, out of which 18 percent is reserved for tourism investments. Few tourism related funds are still available, as more than 80 percent have been contracted. The absorption rate for the same funds however, amounted to only 13 percent in mid-May.
Promoting Romania to foreigners and… locals Lack of cooperation between the authorities and the private sector, the lack of a coherent national strategy to support the development of the tourism industry, the lack of know-how, the lack of financing and numerous other “lacks” mean that discussions about the local tourism industry’s potential remain perpetually about potential only. But putting all this aside, how confident and proud are Romanians to act as ambassadors, promoting their own country or city and, moreover, how well do they know local tourist destinations in the first place? Not that well, according to a little test devised by Magda Savuica, project manager of the 273 Places to Visit in Romania online project. Participants were asked to identify the tourist sites in seven pictures but it proved a difficult task. “It is obvious that we are not managing to capitalize on the available tourism po-
www.business-review.ro Business Review | June 25 - July 1, 2012
tential we have. It is also obvious that we can’t fight this conception Romanians have, that a holiday abroad can offer more than a holiday spent locally,” said Antohe, adding that unfortunately there are many Romanians who don’t know their own country and not much has been done to change this conception. Another topic raised by Calin Ile, vicepresident of the Romanian Hotels Federation and the moderator of the event’s second session, was whether Bucharest can gain more from tourism and become a destination for city-breaks. Gabriele Lenger, director for Romania of the Austrian National Tourist Office, shared the experience of Vienna and recommended that the promotion of Bucharest be based on a unique selling proposition. Remus Visan, deputy managing director at Paravion Tour / Happy Tour, said that without the involvement of the authorities there is only so much private operators can accomplish even if the potential is there. Bucharest can also gain through events and conference tourism, added Sorin Nicolescu, president of the tourism section of the Bucharest Chamber of Commerce and Industry, but here too, the authorities need to address their reticence. In his opinion, Bucharest has the capacity to host at least one large event with more than 800 participants per month.Ending the discussion on a more optimistic note, Razvan Antoni, general manager of Amadeus Romania, said change is possible through a general change in mentality and by focusing less on the negative aspects and more on the problems that can be addressed.
simona.bazavan@business-review.ro
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1. Sorin Nicolescu, president of the tourism section of the Bucharest Chamber of Commerce and Industry; Traian Badulescu, general manager, Travel Advisor Media; Sorin Ionescu, managing partner, FiveStar Hospitality; Corina Martin, president of ANAT/FAPT Federation; Remus Visan, deputy managing director, Paravion Tour / Happy Tour; Razvan Antoni, general manager, Amadeus Romania; Gabriele Lenger, director for Romania of the Austrian National Tourist Office 2. Calin Ile, vice-president, the Romanian Hotels Federation 3. Corina Martin, president of ANAT/ FAPT Federation; Remus Visan, deputy managing director, Paravion Tour / Happy Tour 4. Razvan Antoni, general manager, Amadeus Romania
www.business-review.ro Business Review | June 25 - July 1, 2012
8 US INVESTMENTS
Driving forward: Ford’s plant in Craiova represents a major US local investment
US giants lead local investment wave Romania attracted around USD 1 billion of US investment between 1990 and March 2012, making America the 12th largest investor locally. Defense and energy are strong growth areas with US firms also active in IT, manufacturing and agriculture, among other fields. ∫ OVIDIU POSIRCA Trade between Romanian and the US reached USD 1.96 billion in 2011, gaining 32 percent year-on-year. Romanian exports were up by 65 percent to USD 1.1 billion last year, while imports of American goods gained 30 percent to USD 656 million, according to the National Statistics Institute (INS). The value of US exports of goods to Romania, not services, was USD 914 million in 2011, according to US Embassy Commercial Attaché Keith Kirkham. Business advocacy group AmCham says that Romanian needs a comprehensive energy strategy, covering all sectors, not just electricity, to attract foreign investors and retrain the existing ones. In addition, the country’s infrastructure needs urgent development, be it energy or road. AmCham says that US companies doing business in the Romanian healthcare sector are especially concerned in the drawing up of the new Health Law and the calculation algorithm of the clawback tax in the pharmaceuticals industry. The inappropriate drafting of this projects could lead to business relocations, warns AmCham. US companies are looking for appropriate PPP legislation, as they have often evaluated the available proposals as not rentable enough to join. In addition, trans-
parency and economic predictability remain long-term objectives, along with a fiscal policy that stimulates growth. “Investors would like to see more transparency and predictability in government decision-making and to be consulted when the government makes policy decisions that affect their respective industries,” says Kirkham. There are about 6,453 US ventures in Romania, including large companies such as Ford and Microsoft, according to the Embassy of Romania in the United States.
Keep the wheels rolling US car manufacturer Ford began this May to produce a new 1.0 liter EcoBoost petrol engine in Craiova. This follows an investment of EUR 180 million in the modernization and upgrade of the Craiova engine plant. The company will kick off production of the new B-MAX model later this June. Ford plans to manufacture 60,000 units this year, increasing output to 100,000 cars next year. This is two years’ behind the initial production plan. Ford Motor Company acquired in 2008 the Automobile Craiova plant after buying a majority stake in Automobile Craiova from the state in 2007. According to the updated privatization contract, Ford will produce 810,000 cars and 1.5 million engines between 2012 and 2017 in Craiova. In order to support such a pro-
duction plan, the carmaker started in “If the other deposits prove to be gas rich as well, Romania could be a natural gas March to recruit 500 people, mainly prosource not only for itself, but also for othduction line operators and maintenance specialists. Following this hiring wave, er countries in the EU.” Basescu said these deposits could the Craiova plant will reach 4,000 emhelp Romania become energy indeployees. pendent in 2015-2016 time frame. Overall, Ford has invested more than EUR 675 million in its engine and car Shield partners manufacturing plant in Craiova. Romania and the US signed last SepThe Craiova site has attracted severtember in Washington an agreement on al car component manufacturers, inthe deployment of the US ballistic missile cluding US Johnson Controls, which defense system in Romania. Building opened in January a seat plant in the works on the military site in Deveselu, Olt premises of the Ford plant. The plant will County, will start in the spring of 2013 and assemble customized seats for up to should be completed in 24 months. US 1,300 cars every day, and the yearly carepresentatives are currently tendering pacity could reach 300,000 cars. The two contracts for the development of the company employed 100 people in Craiofacilities in Deveselu. va this winter, and plans to create 60 new The missile defense agreement stipjobs later this year. Already, Johnson ulates that Romanian companies should Controls has nine plants in Romania, embe used if possible to develop the Deploying 4,500 people. The company proveselu base. However, the domestic comvides car seats for Dacia from its plant in panies need to prepare for fierce compeMioveni, Arges County. tition. Around 175 companies from nine countries including Spain and the UK atGas road to independence tended and industry day at the Deveselu Romania is currently pondering the exbase earlier this June. ploitation of shale gas resources, which One contract worth USD 100-250 milis done through hydraulic fracturing. The lion will be used for the development of drilling uses a mixture of water, sand and the Missile Defense Agency (MDA) facila cocktail of chemicals to open fissures in shale gas rocks to release gas and oil. ities that include the launch pad of missile interceptors and critical infrastructure. This procedure has already been banned These units require a US prime contracin France and Bulgaria due to environtor that has security clearance. Other famental concerns. It has been suspended cilities such as a fire station and the site in the UK and a German region. infrastructure don’t need a US prime The Ponta government has imposed contractor. a moratorium on shale gas extractions A second contract worth USD 25-100 until European studies gauge the impact of fracking on the environment. million is available for the setting up of the navy facility, which includes housing Ponta told Bloomberg earlier this month and dining facilities and site utilities and that a decision on these projects will be infrastructure for 250 people. A US prime made after the November parliamentary contractor will not be needed in his case elections. due to the limited exposure to the MDA US oil and gas group Chevron began facility. The US will deploy around 150 exploration works on shale gas formamarines in the Deveselu base, and the tions in Romania in 2010. The company number of military personnel and civilacquired the Barlad concession in Febians cannot exceed 500. ruary 2011, which covers 6,350 sqm in the northeast of the country. It plans to drill the first exploration well in the second IT&C loves Romania half of 2012. Chevron also won the conUS companies in the IT& C business have cession for three blocks which comprise benefited from the pool of Romanians about 2,700 sqm in southeast Romania. with technical skills ever since the 1990s. “The current plan to drill is not exIn 2010, the IT sector generated five perploitation of shale gas. It’s simply drilling cent of Romania’s GDP, employing holes and finding out if there is any shale around 116,000, according to governgas there. It doesn’t present any enviment estimates. Microsoft, Oracle and Acronmental problems whatsoever,” said US centure are some of the US companies Ambassador Mark Gitenstein in a telewith a significant presence in Romania. vised appearance in late May. Chip manufacturer Intel opened an R&D President Traian Basescu said this center in Romania this March, employing April shale gas could make Romania less around 350 people. The center has three dependent on gas imports from Russia. divisions that collaborate with 26 similar Currently, Romania imports one third units across Europe. Intel has a local of its consumed gas from Russia, at three sales and marketing office in Romania and has acquired two companies on the times the cost of domestic sources. Howlocal market. ever, the final price paid by consumers is Hewlett-Packard Romania employs lower as regulation provides a natural gas around 3,600 people in the Global ebasket, which uses 70 percent domestic Business Operation Centre (GeBOC), gas and 30 percent imported gas. The fiwhich supports HP entities in Europe, the nal price paid by consumers is the weightMiddle East and Africa. ed average of the two. IBM opened in late 2011 the Bucharest US oil company ExxonMobil and the Systems Laboratory that could accomRomanian oil and gas producer OMV modate around 125 software developers. Petrom found gas in the Black Sea earliThis will collaborate with the IBM Busier this year, during joint-exploration ness Analytics laboratory, which was set works offshore Romania. The two comup after IBM acquired Clarity Systems in panies teamed up in 2008 to explore the Neptun block, which covers 9,900 sqm. 2010. Google opened an office in Romania “A natural gas deposit of around 100 in late 2010 and aims to develop the bcm (billion cubic meters) has been dispresence and strategy of the search encovered and there are similar perspectives gine giant locally. for other deposits that will be explored next,” said President Traian Basescu in March, quoted by Agerpres newswire. ovidiu.posirca @business-review.ro
www.business-review.ro Business Review | June 25 - July 1, 2012
10 FOCUS
Brave new world: fast-growing Chinese cities like Tianjin are facing a difficult future owing to the tough international climate
China prepares for challenging times China’s economic growth is one of the global success stories of the last few decades. Although the country’s overall economy is the second largest in the world, having overtaken Japan, its GDP per capita is still low by Western standards. The country’s economy managed to survive the global economic crisis but now faces some difficulties that could ask testing questions of its authorities. ∫ ANDA SEBOEIS While all eyes are on the Euro zone, might the world be overlooking an even bigger crisis brewing in China? This is both the headline of a recent article published by BBC but also a potential concern for many countries worldwide. It is based on indicators such as the sharp slowdowns in electricity demand, industrial production, factory output and retail sales, which have begun to point to an economic downturn in the Asian country. Over the past few months China has already been suffering from the difficulties that Europe, its biggest export market at present, is currently facing. According to the Investment in the PRO study conducted by KOMPENI, China was a net exporter to developed countries such as the US, UK, France and the Netherlands in 2010. Two notable exceptions are Germany and Australia, where imports exceeded exports. A survey conducted by HSU and
quoted by BBC found that China’s manufacturing sector has been contracting for the last seven months, mainly due to weak export demand. Plus, according also to BBC, total property sales dropped 12 percent in the first four months of 2012 on last year. The number of new construction projects fell 15 percent in April, while purchases of land were down by more than half. The problem is that since the beginning of 2009, China has built 2.3 billion Sq of residential property space and a further 3.2 billion is still under construction. These are the sources of stories about entire new ghost towns that have been built and remain unpopulated. But despite this, China is still a rapidly growing economy and appears attractive to many investors when most of Europe is in recession. “It was ranked second in the world, after the US, for the amount of FIFA attracted in 2011. There is also still a lot of potential for growth,” says Ori Efram, partner and head of the
China practice for CEE at KOMPENI. He adds that, recently, Chinese government policy has focused more on stimulating domestic demand, to counter the negative impact of the global downturn on exports. “This could give an added boost to
COUNTRY PROFILE China facts: l The world’s largest gold producer l The world’s large tobacco producer and consumer l Had 485 million internet users at the end of June 2011 (ranked 1st) l FDI (in the first seven months of 2011): USD 69.2 billion l GDP (2010): USD 5.88 trillion l GDP per capita (2010): USD 4,403
companies that are aiming to extend their sales and client base in China. Nevertheless, there is a risk of some sectors in the Chinese economy overheating, so it is important for any investor to get expert local advice before proceeding,” adds Efram. In addition China has introduced a framework of commercial law to encourage foreign investment and the country ranks 79th for “ease of doing business” among 183 countries. This indicates that China is not an easy place to do business, but it is still the top ranked economy among the BRIC countries. Moreover, China’s consumer market is predicted to benefit from an expanding middle class and rising disposable income, according to the KPMG study. The Economist Intelligence Unit (EIU) reported that private consumption in China will more than double from around USD 2 trillion in 2010 to USD 4.8 trillion in 2015. Researchers from KPMG also emphasized that China had become the second largest economy in 2010, while 61 Chinese companies are ranked in the Global Fortune 500. “China is now the largest potential market for many businesses and services. Costs are highly competitive compared to Europe and it also has a rapidly developing infrastructure which means that the logistics for doing business are improving all the time. Many international companies have made good profits from their business branches/subsidiaries in China,” adds the KPMG representative. Though of course business success in China is not guaranteed, companies with a robust strategy there and commitment to the market have a good chance of seeing results. For example, the same KPMG study found that Yum Brands Inc, which owns KFC and Pizza Hut, derives around 40 percent of its overall profits from China, Volkswagen sold over 1.8 million vehicles in the country in 2010, representing about 26 percent of its worldwide sales, and Boeing expects Chinese airlines to add 4,330 airplanes, worth USD 480 billion, by 2029. It is also the world’s largest automotive market while some foreign brands such as Volkswagen, General Motors, Hyundai and Toyota are leading players. “Certainly China’s rapid economic growth has presented a challenge to businesses in other countries, and has put pressure on leading international brands to be more competitive. However, China’s growth should be seen as an opportunity rather than a threat. International brands which are proactive about expanding into the Chinese market should have a lot of chances for development,” says Efraim. China is, to some extent, a country of contrasts. Although it became the second largest economy in the world and about 50 percent out of a total 1.34 billion population was urban at the end of 2010, China’s GDP per capita is still low compared with Western averages. Plus, according to the KPMG study, the 12th five-year plan identifies seven strategic industries which are expected to benefit from special incentives and funding: energy conservation and environmental protection, next generation IT, biotechnology, high-end equipment manufacturing, new energy, new materials and clean energy vehicles.
Source: KPMG study anda.sebesi@business-review.ro
www.business-review.ro Business Review | June 25 - July 1, 2012
12 POWER
Financing tap switched off as Hidroelectrica enters insolvency Romania's largest hydro power producer Hidroelectrica, which has assets of around EUR 3 billion, became insolvent last week due to lack of liquidity. The board of administration said the measure was taken to save the company, which reported a profit of just EUR 1.5 million last year, but it could also lead to the cancelation of some of the murky contracts with “smart guys”, which generate lost revenues of around EUR 175-220 million yearly according to the IMF. ∫ OVIDIU POSIRCA State-owned Hidroelectrica, which generates one third of Romania’s electricity, filed for insolvency on June 15 and the court approved the measure five days later, designating Remus Borza as the provisional judicial administrator. His company Euro Insol is handling the insolvency procedures of 140 companies with a combined value of EUR 600 million, including real estate projects and factories. The first general meeting of creditors will be held in late August and Borza estimates the reorganization plan will take a year and a half. Hidroelectrica’s overall debt amounts to EUR 1 billion, including liabilities to suppliers and banks, according to Borza. He added that the turnover was EUR 714 million while the profit was a meager 0.2 percent last year.
Insolvency buoy Remus Vulpescu, president of Hidroelectrica’s administration board, said last week the insolvency procedure aims solely to reorganize the company, not to drive it into bankruptcy, fully nationalize it or sell off some of its assets. He added that the low profit of around EUR 1 million registered last year proved the company was being mismanaged. Hidroelectrica, which has 5,300 employees, is one of seven state-owned companies that must appoint private managers, under the EUR 5 billion standby agreement with the IMF, European Commission and World Bank. This hasn’t happened so far, although some progress has been made in terms of improving the efficiency and transparency of SOEs. In late 2011 the government approved an emergency ordinance that implements the OECD principles of corporate governance in all majority stateowned companies. Vulpescu said the drought that hit Romania in late 2011 had forced Hidroelectrica to cut output by 50 percent after it imposed the force majeure clause on September 30. This led to a loss of RON 121 million (EUR 27 million) in 2011, and another RON 112 million (EUR 25 million) in the first five months of 2012. In addition, the debt maturing over 90 days increased to RON 470 million (EUR 105 million), while the cash flow was reduced by 27 percent in 2012. Making a state-owned power generator insolvent is something of an aberration, say pundits, as it has not happened with companies that are majority owned by other EU members. “I haven’t heard of such a situation in the energy sector in recent years. In fact, state-owned energy companies have developed to the detriment of private firms. The fact that they used this extreme measure signals profound issues, which have accumulated over time – it isn’t just the effect of last autumn’s drought,” said
Cristian Ravasila, senior manager, business recovery services leader, PwC
Vasile Godinca-Herlea, managing partner, Casa de Insolventa Transilvania
Alexandru Lupea, partner, audit services, and group leader for energy, industry, mining and utilities at professional services firm PwC Romania. The reorganization plan is usually added a maximum of 30 days after the final version of the claims table is posted, irrespective of the company size, according to Vasile Godinca-Herlea, managing partner at Casa de Insolventa Transilvania (CITR), an insolvency firm. He explained that the process of debt claims lasts a maximum of 80 days if the table of claims is not challenged, a development that can last between one month and a few years, in some cases. PM Victor Ponta set up a committee earlier this June to evaluate the economic and financial situation at Hidroelectrica. The committee, which comprised the heads of the Finance, Economy, Justice and Administration and Interior Ministries, was due to issue a report by June 15, when the company filed for insolvency.
ity at preferential tariffs to electricity traders, industrial clients and electricity producers. Hidroelectrica might have indirectly subsidized clients which breaks EU state aid rules. The commission says that contracts between the eight electricity traders and Hidroelectrica, some of which date back to 2004, along with contracts between the power generator and two industrial manufacturers, were concluded below market rates. Moreover, in contracts with the two electricity producers, Hidroelectrica bought electricity at above market rates. The commission concludes these companies may have gained an advantage over their competitors. In April the Competition Council opened an investigation into a possible infringement of competition law by 12 companies and is collaborating with the commission. Both investigations should be completed by year end. Although the “smart guys” are being investigated, they appear unwilling to renegotiate their contracts. Vulpescu said none of the companies with a bilateral contract had agreed to reduce the contract period and only small breakthroughs had been registered, such as a slight increase in prices and the reduction of delivered electricity. Some commentators speculated that the board of administrators had voted for insolvency in order to scrap some of these damaging contracts, which seems an achievable aim. “Theoretically, during the insolvency procedure, ongoing contracts that don’t allow the company to maximize its wealth or are harmful to the company and its creditors can be terminated,” said Godinca-Herlea.
Tide starts to turn against “smart guys” The IMF has urged Romania to renegotiate the bilateral contracts with the socalled “smart guys”, companies that secured long-term power purchase agreements with Hidroelectrica. These contracts were sealed between 2001 and 2003, and have expiration terms in 2014, 2015 and 2018. Vulpescu, who is the head of the Office for State Ownership and Privatization in Industry (OPSPI), said earlier this month that three quarters of Hidroelectrica’s power output went to eight beneficiaries with direct agreements. The sales of Hidroelectrica to these companies amounted to EUR 1.52 billion in 2011, which is half of total sales. This long-running issue has caught the attention of the European Commission, which in April opened five distinct investigations to see whether Hidroelectrica had purchased or sold electric-
Sinking finances Hidroelectrica was supposed to list a 10 percent stake on the Bucharest Stock Exchange (BSE), with estimated earnings of around EUR 380 million which would have been used to bolster the share cap-
ital. The consortium that is intermediating this listing is comprised of investment banks Citi and Societe Generale, French lender BRD and the brokerage Intercapital Invest. Romania is planning to raise around EUR 1 billion from privatizing minority stakes in five energy companies on the BSE. Specialists say it is possible to list a company after creditors have approved a reorganization plan, but this involves a risk. “Commercially speaking, given that the stock exchange reflects investors’ perception of the value of a company, the insolvency will probably have a negative impact on the listing process,” said Lupea. Financing investments is also a challenge for Hidroelectrica, which has an installed capacity of 6,400MW and produced 14,710 GWh of electricity last year, a quarter of Romania’s output. The company manages over 270 hydroelectric plants and pumping stations. Hidroelectrica has secured financing of EUR 358 million for investments this year, with EUR 94 million coming from banks. Now investments may fall given the difficult situation of the power generator. “In the current situation, potential financing will come from existing financiers (financing institutions). It depends on the quality of the reorganization plan, the measures it includes and the company perspectives, which will have to finance both the creditors and the financiers,” said Cristian Ravasila, senior manager, business recovery services leader at PwC Romania. “Theoretically it is possible to finance companies going through insolvency procedures. Practically, there are few cases due to higher financing costs, doubled by the coverage of the loan with guarantees above the regular level demanded by financiers.” Godinca-Herlea, meanwhile, said banks usually avoid lending money in this situation. Hidroelectrica has to pay back loans amounting to RON 2.1 billion (EUR 470 million). Last year, it took out EUR 110 million from the EBRD to revamp six hydropower stations. Another two loans worth around EUR 30 million each were taken out to finance the working capital. The Ministry of Economy is the largest shareholder in Hidroelectrica, with an 80 percent stake, while the Property Fund has the remaining stake. However, the insolvency decision wipes off RON 3.2 billion (EUR 851 million) from the EUR 3.51 billion net asset value (NAV) of the Property Fund (FP), as the holding value in the FP’s NAV will change to RON 0 until the procedure is finished. The fund said Hidroelectrica’s insolvency proceedings would not impact the dividend payment, the buy-back program of shares or the secondary listing in Warsaw.
ovidiu.posirca@business-review.ro
www.business-review.ro Business Review | June 25 - July 1, 2012
INTERVIEW 13
AMB Holding goes from wine to alternative energy investments
∫ SIMONA BAZAVAN Why did you decide to invest in Romania in the first place and what did you begin with? I have been active in Romania since 1990. I started with a duty-free zone in Constanta but due to the political context we had stop this business pretty soon. We came back about 12 years ago with my core business, which is development of real estate. By education I am an architect. This is something we have done in other places in Central and Eastern Europe. But also for more than 20 years I have been very active in agriculture and forestry and other alternative investments. Along with S+B Gruppe, I would say we have invested more than EUR 200 million in Romania so far. The farming, forestry and winery investments have been made through my pri-
Courtesy of AMB Holding
Alfred Michael Beck, managing partner of AMB Holding and shareholder of the S+B Gruppe developer, talked to BR about some of the alternative investments in agriculture and energy he is planning locally and shared the scoop on an EUR 80 million real estate project the companies intend to develop near the Otopeni airport. vate holding, AMB Holding, while the real estate projects are developed by S+B Gruppe, in which AMB Holding is a 50 percent partner.
We will invest some EUR 80 million there. Beginning work on the site depends on getting the building permits.
What real estate projects do you have here and what are the plans in this direction? In Romania we have a project on Magheru Blvd which combines office and retail. We are just finishing it. We have also bought a series of plots of land. The main target is, once the market recovers, to use all the land we have bought already more or less for retail projects. We own about 80 hectares of land for real estate projects. For example, we have a plot of land just in front of the Otopeni airport in Bucharest, of 46,000 sqm. Along with S+B Group we are planning a mixed project – hotel, office and logistics.
In what other regional countries are you present? We started operations in the Czech Republic in 1986. Parallel with that, in 1988 we began in Hungary. We are also active in Russia and Poland and we have set up a business in Ukraine. But the largest country we have invested in so far is Romania. What attracted us here were the people. From the very beginning I had a very positive impression of the people, even contrary to that of my colleagues. The challenge in the beginning was to overcome the idea that we, as investors, were here just to bring money.
What can you tell us about your agriculture business in Romania and what other alternative investments are you planning? We own 700 hectares of farmland in the region of Oltenia on which we mainly grow cereals. We started this business five years ago and we were very lucky to buy a compact plot of 650 hectares. The optimum target for the machinery we bought is to reach a total surface of about 1,000 hectares, which I think will be accomplished in a couple of years. We have now started to buy again but I am also open to partnerships. We have bought restitutional rights for forests and hope to finally gain a minimum of 1,700 hectares. For me, agriculture is an alternative investment and a long-term one. Energy is another such investment. We are considering a project to grow wood for energy and we are also looking into wind and water energy. Along with a partner we have a patent for wind energy and small water energy plants which is being tested in Switzerland and Austria. If it works as we expect we are planning to implement this locally. What is in store for the Liliac business? At the end of last year we will have invested about EUR 6 million in this business. I think in about two to three years we will reach a stable level and make it profitable in terms of working costs. This is a longterm investment with no deadline to recover the money invested and no plans to sell. But I am very optimistic because 50 hectares of vineyard is not that little and is not a hobby.
simona.bazavan@business-review.ro
www.business-review.ro Business Review | June 25 - July 1, 2012
14 CITY FILM REVIEW
Headhunters
Thrills and spills in Headhunters
DEBBIE STOWE Director: Morten Tyldum Starring: Aksel Hennie, Synnove Macody Lund, Nikolaj Coster-Waldau On at: Cinema City Cotroceni, Grand Cinema Digiplex Baneasa, Hollywood Multiplex Roger Brown is living the dream. He has a well paid job as a corporate recruiter, a swanky minimalist show home, a blonde trophy wife and an accommodating mistress. He’s not very tall, but that’s the only black spot on the horizon. Or so it appears. Despite his fancy job, Roger can’t actually afford his house (mainly because he’s bankrolling bored Trophy Wife’s new art gallery). To fund his pretentious lifestyle he’s had to adopt a lucrative sideline as an art thief, using his day job to elicit helpful information from wealthy executives whom he then robs while they’re out at interviews he has arranged for them. This works a treat – until one day he picks the wrong victim.
Such is the premise of Headhunters, a Scandinavian thriller that’s as clean, efficient and functional as a Billy bookcase. From the moment anti-hero Roger (Aksel Hennie) introduces us, via voiceover, to his dual life to the conclusion, what plays out is a highly entertaining thriller, that’s high on tension and spare on gimmicks. Once Roger is pitted against Clas Greve (Nikolaj Coster-Waldau), an ex-mercenary turned top executive who also happens to be tall, athletic and ridiculously handsome, our distaste for his dishonesty and shallow outlook turns to empathy. Roger is plunged into a Hitchcockian nightmare (the fact he shares his name with Cary Grant’s similarly superficial character in North by Northwest is surely no accident?), with the villainous ubermensch Greve and plodding local police both bearing down. Scandinavia is hot right now. (Not literally – it’s still less than 20 degrees in Oslo, even in late June.) There’s the best-selling books and films of Stieg Larsson and Emmy-nominated Danish crime drama The Killing – if it’s Nordic and people are being murdered, audiences are lapping it up. Headhunters perfectly exemplifies why. It’s taut, neat and sparing. There is clearly a Hollywood influence and a couple of plot points push the boundaries of plausibility, but overall the movie is a refreshing piece of Scandi cool. There’s plenty of offbeat Nordic humor in between the tense action sequences and a hint of Bourne in the pared down European settings. It is also timely: the lingering effects of the financial crisis mean that we still love to hate corporate narcissists, which makes it extra fun watching Roger’s ostensibly perfect life (and hair) crumble. ∫
BUSINESS AGENDA June 26 10:30 The Association of Generic Pharmaceuticals Producers in Romania (APMGR) organizes a press conference on the clawback tax at Hilton Hotel. By invitation only. June 27 12:00 Carapatica Asig organizes a press conference to present its new management team at Pescariu Sports & Spa Complex. By invitation only.
June 27 ∫EVENT 18:00 BR organizes the fourth edition of the American Investors Forum at Ramada Plaza Bucharest. More at http://business-review.ro/br-events/ June 28 09:30 Transporter Autobusiness Forum organizes a conference on urban and metropolitan transportation at Ramada Plaza Hotel. By invitation only.
13:30 The Property Fund organizes a press conference to present the results of its shareholders meeting. By invitation only.
July 10 -11 Euroconvention Conferences organizes the Romania & Bulgaria Healthcare Summit 2012 at Intercontinental Hotel in Bucharest. More at www.euroconvention.com.
ISSN No. 1453 - 729X
FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi ART DIRECTOR Alexandru Oriean PHOTO EDITOR: Mihai Constantineanu PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu
CULTURAL EVENTS AGENDA MUSIC Tuborg GreenFest – Rock the City June 29 – July 1, Romexpo
crooner has sold over 300 million records worldwide in 14 languages and released 77 albums.
OPERA
Musical heavyweights Guns N’ Roses, The Cult, Godsmack, Ugly Kid Joe and Within Temptation are the headliners of the Rock the City 2012 festival. Also among the lineup are Machine Head, Black Label Society, Saxon, Pentagram, Sweet Savage and Lostprophets. Julio Iglesias – 2012 World Tour June 30, 20.00, Zone Arena
Un ballo in maschera (A Masked Ball) June 30 – July 1, 19.00, Bucharest Opera The last performance of the Bucharest National Opera 2011-2012 season will be a premiere: A Masked Ball, an opera in three acts by Giuseppe Verdi with text by Antonio Somma.
OUTDOOR Red Bull women skydiving competition June 30, 10.00, Izvor Park The best female skydivers from Romania will take part in the first skydiving competition organized in Bucharest.
EVENTS
Spanish singer Julio Iglesias will take to the stage in Bucharest as part of his 2012 World Tour. In his 40-year career, the
Iranian Culture Week June 22-28 The Romanian Peasant Museum, the National Library of Romania The Embassy of Iran invites the Romanian public to discover the culture and art of the Persians. Several photo, traditional art, costume and culinary art exhibitions will be held alongside concerts and workshops at the Romanian Peasant Museum and the National Library of Romania.
WHO’S NEWS Business Review welcomes information for Who’s News from readers. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
Giovanni Chiarelli 45, will be joining Vodafone Romania as chief technology officer (CTO) starting July 1. He joined Vodafone Group in 2010, as program delivery director, where he led the roll-out of global capabilities in online and IT, while establishing new centers of excellence in retail and integration technologies. Prior to moving to Vodafone, he was chief information officer at Telecom Italy after a ten-year career. Chiarelli has a degree in Electronic Engineering from Politecnico di Milano and an MBA from SDA Bocconi, Milan, Italy.
Luca Schianchi 60, is the new director of the Procter & Gamble plant in Urlati, where he will lead 300 employees, starting July 1. He replaces Luc Viaene, who has led operations at the
PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Ana-Maria Stanca SALES & EVENTS Ana-Maria Nedelcu RESEARCH & SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
unit since construction works started. Schianchi joined P&G 16 years ago in Italy, after getting a master’s degree in Mechanical Engineering at the University of Parma. He has held various management positions at the company, from logistics operations to production operations, in seven countries.
Anca Ionescu will be retiring from her position as tax partner at Ernst & Young on June 30. She has been a member of the tax advisory & compliance practice of E&Y for the past 16 years and has contributed to building the tax department into a strong and well-integrated practice. Since starting her career with E&Y as a consultant in 1996, she worked her way up to partner in business tax advisory, coordinating many assignment teams in assisting a number of local and international entities.
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