CITY: Historic houses expert Valentin Mandache organizes architectural tours of Bucharest landmark attractions. He invited BR on a walk along Dacia boulevard to illuminate its Little Paris highlights »page 12
ROMANIA’S PREMIER BUSINESS WEEKLY
AUTO MARKET
OCTOBER 1 - 7 / VOLUME 16, NUMBER 31
CARMAKERS AND DEALERS ARE STRUGGLING WITH SIGNIFICANT SALES DROPS ON A LOCAL MARKET WHERE CAR OWNERSHIP IS STILL AT HALF THE AVERAGES POSTED BY WESTERN COUNTRIES »PAGE 8
State coffers are EUR 682 million richer after the telecom tender awarding the highest amount of spectrum ever granted in Romania, while telecom operators are lining up their 4G launch plans »page 10
4G FUTURE IS HERE NEWS
NEWS
FOCUS
We have a winner?
On the radar
Self-made millionare and media personality Dan Diaconescu has won the bid for the Oltchim privatization but is now trying to renegotiate the deal
The Romanian subsidiary of Eurocopter has delivered the first locally enhanced Puma Mk2 helicopter to the UK Ministry of Defence
Small towns, big business
» page 4
» page 4
PLUS
Movie festival Animest Towns with fewer than celebrates bad taste 100,000 inhabitants are » page 13 growth territory for disFind out what’s on in count retailers looking town with BR’s for the best solution in cultural agenda the current economy » page 6 » page 14
www.business-review.ro Business Review | October 1 - 7, 2012
NEWS 3
NEWS in brief Institute of Statistics. The unemployment rate was the highest among young people aged between 15 and 24, at 21.5 percent. Some 693,000 Romanians aged between 15 and 64 were unemployed in the second quarter while the country’s active population was 10.05 million, according to the same source. Overall, the job occupancy rate for the population aged between 15 and 64 was 60 percent, up against the previous quarter and Q2 2011 (+1.2 percent). The unemployment rate among men was 7.5 percent while the female unemployment rate was 6.1 percent.
ENERGY ReneSola buys 6 MW solar park in Romania Chinese firm ReneSola, the global manufacturer of solar panels, has entered the Romanian market after member company ReneSola New Energy fully acquired the share capital of the local company Lucas Est. ReneSola has bought a 6 MW solar park in Romania and will invest around EUR 15 million to complete it. Law firm Wolf Theiss advised the Chinese firm on the acquisition of Lucas Est, which served as a special purpose vehicle for the project. ReneSola, which is listed on the New York Stock Exchange, is planning to expand in Romania and projects are being analyzed by the law firm.
TELECOM RCS&RDS takes over internet provider iLink Photo: Silviu Pal
FINANCE Romanian corporate creditworthiness still low, says ICAP Companies doing business in Romania upped their profits last year, but profitability indicators and creditworthiness still remain at low levels, according to an evaluation of companies published by ICAP Romania, the credit rating firm. ICAP analyzed the financial data reported by 435,152 companies in the last two years and found that the total turnover had gained 16 percent to RON 944 billion (over EUR 222 billion). The growth was sustained by the commerce and industry sectors, which doubled their net profit and increased turnover by 16 percent. Meanwhile, the services sector grew its turnover by 8 percent and increased its net profit from RON 0.3 billion to RON 1 billion (EUR 235 million), according to Nikos Komninos, executive director of international business at ICAP Group. ICAP data show that 78 percent of companies had improved or remained in the same credit risk zone, while 22 percent had seen their situation worsen. He added that 22 percent of Romanian companies have a default risk of 35 percent. On the bright side, 24 percent have only a 3.3 percent risk of defaulting in the next year.
LEGAL Hammond, Bogaru and Associates enters CEE partnership Bucharest-based law firm Hammond, Bogaru and Associates, Dvorak & Spol in Prague, Gobert and Partners in Budapest and Ilieva Voutcheva & Co in Sofia have announced that they are entering into a
ROMANIAN grassroots Yes. They Can! US citizens living in Romania gathered last week for a multimedia event to support the re-election of President Barack Obama. Attendees had the opportunity to find out more about the Democratic incumbent and how to register to vote overseas. Another event, titled Get Out The Vote (GOTV), is scheduled to take place on election day. The Committee for the Re-election of President Obama is presided over by local businessmen John Florescu (pictured with tennis player Ilie Nastase) and Radu Florescu. The Republican candidate Mitt Romney is endorsed by Romanian TV personality and actor Florin Calinescu. new CEE partnership under the name BWSP, effective 20 September. BWSP will offer a full range of legal services in Central and Eastern Europe in the area of corporate and commercial law. Through the creation of this structure and its associated network, the partner firms will be able to offer existing and future clients a unified standard of legal services, extended experience and local knowledge around jurisdictions in CEE. The constituent partner law firms will continue to practice law in their own jurisdictions.
year, 17 years after it was founded as Scot & Company Consulting. It was the affiliated firm of RSM International between 2009 and 2010. “The affiliation has consolidated our position on the Romanian consultancy market and has positively influenced the turnover, number and quality of clients, as well as the structure of professional services we offer,” said Dan Schwartz, managing partner at RSM Scot. The firm plans to further grow its business to EUR 2 million next year.
RSM Scot predicts 10 percent turnover hike this year
MACRO
Audit and consultancy firm RSM Scot forecasts a ten percent gain in business to around EUR 1.7 million this year, sustained by a growing portfolio of clients, after the firm became affiliated with RSM International. The company became fully integrated in the RSM International network last
Unemployment rate down 0.7 percent in Q2 Romania’s unemployment rate fell to 6.9 percent in the second quarter of 2012, down from 7.6 percent in the first quarter and 7.2 percent in Q2 2011, according to data released by the National
Telecom operator RCS&RDS has acquired internet provider Cobalt IT, which provides services under the brand iLink, according to an announcement by the latter. “Following the partnership between your provider of telecommunication services Cobalt IT (iLink) and RCS&RDS, leader on the internet services market in Romania, the services that you now benefit from are being supplied by RCS&RDS,” goes the official announcement. Cobalt IT provided internet, telephony, data transport and hosting services in various Romanian cities including Bucharest, Galati, Ploiesti, Tulcea, Constanta, Cluj, Alba-Iulia, Timisoara, Sibiu, Arad, Craiova and Satu-Mare.
SERVICES Telus International buys stake in CallPoint New Europe Provider of business process outsourcing and contact center solutions Telus International, based in Canada, has purchased a major stake in CallPoint New Europe, a local operator with 1,000 employees in Romania and Bulgaria. Telus International currently has 13,500 employees and provides support in languages such as English, German, French, Spanish, Italian and Portuguese. Following the deal, it will gain the capacity to provide support in Hebrew, Arabic, Dutch, Russian, Turkish and Scandinavian languages among others. “CallPoint New Europe is now supported by Telus, one of the leaders in telecommunications in Canada, with business of EUR 8.3 billion, and by Telus International, the Telus call-center, BPO and IT outsourcing division,” said Xavier Marcenac, president of CallPoint (Telus International Europa).
www.business-review.ro Business Review | October 1 - 7, 2012
4 NEWS PRIVATIZATION
BUSINESS AGENDA October 1
Oltchim privatization may need government handout
R
09:00 Business Review organizes the third edition of Focus on Telecom, an event that gauges the trends of the telecom industry, at Willbrook Platinum. By invitation only. Find out more at http://business-review.ro/br-events/ 09:00 Maguay organizes the tenth edition of No Time for Downtime, an event that presents hardware and software infrastructure solutions for companies, at JW Marriott Grand Hotel. By invitation only.
omanian self-made millionaire and politician Dan Diaconescu has successfully bid around EUR 45 million for the majority stake in the chemical plant Oltchim, but the Ponta government may have to support the petro-chemical manufacturer as the winner is scrambling to raise cash and trying to renegotiate the privatization deal. Romania agreed with the IMF to privatize Oltchim, one of the largest petrochemical companies in South Eastern Europe. The company’s main product is PVC, which accounts for close to 40 percent of its overall production. The government initiated privatization procedures three years ago and appointed the professional services firm PwC as privatization consultant last year. The privatization strategy was approved in February, and included a debt-to-equity conversion. The European Commission (EC) accepted the strategy this spring and four strategic investors expressed their interest in April, according to Mihai Razvan Ungureanu, former PM. Russian TISE Group, which has a subsidiary of Gazprom among its founders, was pondering an offer. “In parallel there were discussions with OMV to join the Arpechim refinery at Oltchim. OMV accepted and said that if a strategic investor came, it would consider giving it the refinery,” said the former PM in a televised appearance.
October 9 ∫EVENT
AVIATION
15:00 Infineon Technologies organizes a press conference to present its development plans in Romania at its headquarters in Novopark. Monica Kircher, CEO of Infineon Technologies Austria, will attend. By invitation only.
October 2 10:30 D-Link Romania organizes a press conference to present its new country manager at World Trade Center, Pullman Hotel. By invitation only. 11:00 Private healthcare network Regina Maria organizes a press conference to mark the launch of the Baneasa Hospital in Bucharest. By invitation only.
October 4 ∫EVENT
09:00 Business Review organizes the Pharmaceutical Industry Roundtable at Ramada Plaza. Find out more at http://business-review.ro/br-events/
October 17 ∫EVENT 09:00 Business Review organizes the third edition of Focus on Power, an event that puts up for debate the recent developments in the energy sector, at Howard Johnson Grand Plaza Hotel. Find out more at http://business-review.ro/brevents/
October 18 Linked Events and Renaud organize the Leaders in Marketing event in Bucharest. Marketing expert Tim McChesney, managing director of Innuvia Partners, will be a guest speaker. Find out more at http://leadersinmarketing.ro/
October 24 HART Consulting organizes the fifth edition of HART Strategic Conferences on talent management at JW Marriott Hotel. By invitation only.
He added that the government had approved in late August a memorandum that abandoned the initial strategy, which got a green light from the EC and IMF.
Show me the money Romania’s privatization office, OPSPI, organized on September 21 the Oltchim bid, which put up for sale the 54.8 percent stake controlled by the government. There were four bidders and Diaconescu’s offer of RON 203 million was the most attractive. The receivables of two state owned companies remained unsold. The claims amount to RON 1.8 billion and represent 56 percent of Oltchim’s debt. Offers were also submitted by Aisa Invest and Chimcomplex, which offered RON 30 million and RON 18.8 million respectively. Both companies are controlled by the businessman Stefan Vuza. Oltchim’s largest minority shareholder, PCC, which holds an 18.3 percent stake, offered RON 13.4 million. Now all eyes are on Diaconescu, a situation to which he is accustomed after almost a decade as presenter of a talk show on his own TV station. The businessman briefly left the country last week. Upon his return he claimed he had been on a tour of European countries to find new markets for Oltchim’s products. He also held discussions with a representative of the US Embassy for
almost one hour in Bucharest. “We will sign the contract with Oltchim, when the government accepts our conditions. We asked for a 10-day term when another bidder, PCC, had two to three months,” said Diaconescu, quoted by Agerpres newswire. The businessman’s lawyers are currently negotiating the privatization contract with the Ministry of Economy. They want a clear procedure for the purchase of Arpechim and the fate of the EUR 450 million debt that Oltchim has to pay to four state-owned companies. The situation of the employees is another topic of concern for lawyers. At present, the plant is closed and Oltchim hasn’t paid any wages to over 3,300 workers in over three months. “I hope whoever wins can understand that this is no game, this is about thousands of people and an industrial complex that is extremely important for three counties. If somebody thinks this is something to play with, he will get really burned,” said PM Ponta on September 21. Romania will grant aid of EUR 40 million if the privatization contract is not closed on October 1. This will allow Oltchim to recover 65 percent of its production capacity. Oltchim’s first half turnover fell by 69.5 percent to around EUR 119 million, while losses widened almost three fold to over EUR 26 million. ∫ Ovidiu Posirca
Eurocopter Romania delivers first upgraded helicopter to UK Royal Air Force
T
he Romanian subsidiary of Eurocopter last week finished the first enhanced Puma Mk2 helicopter for the UK Ministry of Defence, as part of a larger program that will see a total of 20 helicopters modernized by the aeronautical group at its facility in Ghimbav, near Brasov. Eurocopter, an EADS company, has reached a deal with the UK Ministry of Defence to upgrade 24 Pumas, in a contract worth around EUR 300 million. Over EUR 19 million has been allotted to the Romanian program. “There are 12 helicopters, all in different stages. Another 6 will be finished by year end. Serial production has kicked off. In the end there will be 20 helicopters, which will be used in Afghanistan. This helicopter is expensive, costing over EUR 10 million,” said Neculai Banea, general director of IAR Brasov and administrator of Eurocopter Romania. The Puma Mk2 comes with improved performance and safety equipment. The company has fitted better engines and
a new avionics and flight management system. Other improvements include a digital automatic flight control system and better ballistic protection. The completion of the first Puma Mk2 marked 10 years of Eurocopter's activity in Romania. Locally the firm set up a joint venture with state-controlled IAR Ghimbav. The company has provided maintenance repair and overhaul services in Romania during its first decade of operations. More than 120 Eurocopter helicopters have been overhauled in Ghimbav. The firm has also delivered 25 new and previously-owned aircraft. "We have 190 employees, including all the staff, and the turnover will be less than EUR 30 million this year. Next year we intend to increase it by 50 percent. The business will be growing mainly through the export market,” Jean-Louis Mascle, CEO of Eurocopter Romania, told BR. Eurocopter is currently working on Super Pumas for the Jordanian Force and Pumas for the Gabon Air Force. The
Nigerian Air Force was another client. Currently the firm is negotiating with customers in Africa and the Middle East. PM Victor Ponta said that he would push for the acquisition of helicopters for the Ministry of Interior, to be used in emergency situations. This summer, for instance, Romania lacked the operational capacity to put out quickly fires that stared in mountain forests due to drought. The Ministry of Healthcare contracted Eurocopter last year to order six EC 135 helicopters for the emergency service SMURD. So far, two such helicopters have been delivered for medical evacuation missions. “I hope that in the future the Eurocopter Group will extend its activities at Ghimbav by creating a production line, and it will get all the necessary support from the government I am heading,” said Ponta. The PM went on board the Puma Mk2 with the UK Ambassador Martin Harris for a short flight around Brasov. ∫ Ovidiu Posirca
www.business-review.ro Business Review | October 1 - 7, 2012
NEWS 5
ENERGY
Romania tries to keep power generation projects going
Pundits warn Romania could become a power importer if it delays building new capacities
A
s the country seeks to attract investors for major energy projects such as two nuclear reactors at Cernavoda and a new large capacity power plant, industry specialist warned that Romania runs the risk of becoming a power importer if the building of new capacities is delayed. Almost 94 percent of the power generation in Romania is state-owned and divided between hydro and nuclear, which are competitive from a cost point of view, while coal needs more investments, according to Luca D’Agnese, country manager at Enel Romania. "We have in this sector a problem of old plants, of inefficient plants that need investments in order to be refurbished or replaced by new units. This is the primary area of attraction for investments,” said the head of the Italian utility last week at the event Mediafax Talks about Energy. He added that in transport and distribution Romania has taken important steps forward on regulatory matters and the way it attracts investors. Aside from Enel, German E.On and Czech CEZ are the main foreign players in the distribution business. Romania aims to set up energy holdings, increase nuclear and hydro output and to further develop the renewable sector. These are long-term projects and require a significant amount of capital expenditure. Investors in Western Europe are developing green capacities, and Chinese firms have expressed their interest in building larger capacities. “Major energy projects are required if Romania doesn't want to find itself an energy importer,” warned D’Agnese.
Investors wanted State-owned China Huadian Engineering successfully bid this summer for a 500 MW coal-fired plant in the Rovinari Energy Complex. The company will invest
USD 1 billion in Romania to build the capacity. The building of nuclear reactors 3 and 4 at Cernavoda is feasible and a consortium led by a Canadian firm has tabled an improved offer, according to Alexandru Sandulescu, director of energy policy at the Ministry of Economy. Meanwhile, the Ministry of Environment decided last week to issue environmental certification for the building of Units 3 and four 4 at Cernavoda, which have a combined capacity of 1440 MW. Almost 20 percent of Romania’s power consumption comes from nuclear sources. Hidroelectrica, the state-owned power producer, plans to build the Tarnita-Lapustesti pumped-storage hydropower plant, which will have an installed capacity of 1000 MW. Over EUR 1.1 billion of investment is required. When built, it will be the largest hydroelectrical load balancing system in Romania. Hidroelectrica, which produces one third of Romania’s electricity output, went insolvent this summer in order to cancel bilateral contracts with a handful of companies that had been granted cheap energy. Sandulescu said the tender book and announcement project had been finalized and should be approved soon by an inter-ministerial committee. “We hope that we will soon have the starting procedure for attracting investors,” said Sandulescu. The Enel manager said the recently approved energy law sets a timeline for regulated prices to be phased out, adding that further investments will come once authorities define the vulnerable consumer. The deregulation of electricity prices will be completed for companies and households by 2013 and 2017 respectively. ∫ Ovidiu Posirca
www.business-review.ro Business Review | October 1 - 7, 2012
6 DISCOUNT RETAIL
Lidl plans to reach 200 stores in Romania by the end of the year
Discount retailers cash in on small-town expansion German discount hypermarket chain Kaufland has become the leader of the Romanian FMCG retail market with sales worth EUR 1.32 billion in 2011, thus dethroning Metro Cash& Carry which had held the position for the past 15 years, according to data released last week. Kaufland has grown constantly over the past couple of years and it is not the only player with ambitious expansion plans in store for the local market. ∫ SIMONA BAZAVAN The Romanian FMCG retail market is expected to reach some EUR 17 billion this year, up EUR 800 million y-o-y. The increase is welcome news for the main players but overall the market remains well below the record EUR 21 billion reported in 2008, as consumers continue
to be careful with their shopping budgets. Despite this, retailers have continued to expand their local footprint with supermarkets and discounters in particular taking the lead. Such stores have proved the top choice of format for expansion, especially in towns with fewer than 100,000 inhabitants – the new battleground for local FMCG retailers.
“One can say that we are dealing with an aggressive expansion of discount stores but this is not substantially more aggressive than that of supermarkets. At this moment we are witnessing rather an expansion of small-surface stores which are best suited to the present economic context,” Sorin Spiridon, manager at Ensight Management Consulting, told BR.
Discount players have entered the local market later than other retail formats but are making the best of the economic context. And while their networks have expanded over the past few years, there is still room for considerable future growth. “In Romania this retail format has had a late start but now it is starting to catch up and probably over the coming years
www.business-review.ro Business Review | October 1 - 7, 2012
AUTO MARKET 7
Discount stores opened over past 2 years Kaufland Penny Lidl
2011
2012
Total
12 13 129
5 7 15
75 135 144
it will reach a market share of about 15 5,000 sqm. The player now operates the percent which is normal for this type of largest hypermarket chain in Romania. business. Under no circumstances do On this segment, it competes with Carwe believe that on either the short or refour, Real, Auchan and Cora, but unmedium term it will enjoy the success it like them it has a discount policy. Also has had in countries like Germany or unlike most of these players, Kaufland Norway where its market share goes be- has managed to invest in maintaining a steady expansion pace over the last yond 38 percent,” said Spiridon. In his opinion the expansion of dis- three years, opening 13 stores in both counters is underpinned by several fac- 2010 and 2011. So far in 2012 it has extors such as the insufficient stock of pended its network by six new outlets modern retail space in small towns and both in larger cities where it was already lower investments due to the format. present but also in towns. At least anAlso, real estate offers to open new other five stores could be added by stores are more attractive now than dur- yearend. Kaufland is part of Schwartz Group ing the economic boom. “There is also the lack of reaction from traditional who is present in Romania with Lidl, trade which doesn’t seem to be able to another discount retail brand. Lidl come up with viable solutions against opened 107 stores last June after having the offensive of modern retail,” he invested in rebranding the local Plus added. As retailers are fighting over Discount supermarkets under its own lower domestic budgets, shoppers are name. The change took place more than assaulted everywhere by the promise of a year after it bought the low-cost chain Plus from German owner Tengelmann the lowest possible prices. Through TV and radio commercials, in February 2010. Throughout 2011, 22 large billboards and brochures – stores, new Lidl stores were built. Lidl representatives announced at regardless of their format, are boasting of slashed prices. Where does this leave the beginning of this year that the discounter was planning to reach 200 discount stores themselves? “The discount format isn’t yet well stores by yearend, by investing up to defined in Romania and this is the case EUR 70 million. Lidl stores cover on avbecause during these times all formats, erage between 800 and 1,500 sqm. Another important discounter in Roespecially hypermarkets, have had an aggressive discount policy. For shop- mania is Penny Market which is part of pers with low budgets the retail format German Rewe Group alongside the Billa matters less than the price they pay, supermarkets, also present locally. There are currently 129 Penny Marwhich holds greater sway. One can say that we are seeing a sort of ‘shopping ket supermarkets in Romania and six tourism’ because in order to optimize larger Penny Market XXL stores. The their budgets, shoppers are willing to go discounter invested about EUR 45 milto two, three stores in single day,” he lion last year in opening some 13 new said.Despite this, discounters are outlets. Another six stores have been expected to speed up their expansion in added so far in 2012 and new openings the years to come, given the favorable are expected by yearend. The first local economic climate for them. “Once this Penny Market store was opened in 2005. Another retailer with an aggressive crisis period passes, some of their consumers will migrate to other formats as expansion policy over the past couple of Romanians are attracted more by qual- years is Profi. The firm operated as a discounter until the beginning of this year ity than price,” he went on. The coming years could also see new when it repositioned itself. The new format is neither a discount players weigh in. “In 2012 we don’t think we will see new large players en- store, nor a supermarket, but simply tering the market but this will certainly “close” to the customer, said company happen in the next few years. The costs representatives at that time. Profi, of entering Romania are still low but as owned by Polish private equity comthe market matures, they will go up pany Enterprise Investors, has plans to open some 30 stores this year. After substantially,” concluded Spiridon. opening three more stores last week, Discounters fire up expansion the company said the figure could go up. It presently runs 132 stores with an engines Kaufland managed to increase its sales average sales surface of less than 500 by about 20 percent last year to EUR 1.32 sqm located in 81 local towns. Profi reported sales of RON 1.04 bilbillion, thus becoming the leader of the local FMCG retail market by dethroning lion (approximately EUR 214.5 million) Metro Cash & Carry which had led the for last year, up 29 percent y-o-y. The growth was mainly generated by the field since entering the market in 1996. The German discount hypermarket opening of 26 new outlets, while likechain came to Romania seven years ago for-like sales growth was 7.5 percent. and has since opened 75 stores with an average sales area of between 3,000 and simona.bazavan@business-review.ro
www.business-review.ro Business Review | October 1 - 7, 2012
8 AUTO MARKET
Romanian car market sees sales stall Carmakers and dealers everywhere are struggling to put a brake on their losses and steer towards new opportunities. On the Romanian car market the volume of sales has dropped significantly and there are no signs of recovery soon. ∫ ANDA SEBESI
Photo: Mihai Constantineanu
The economic crisis has crashed into the international car market, making all players rethink both their local and international strategies. Romania is feeling the pain and the consequences are visible at all levels: in the sales volumes of new cars, profitability, layoffs and stagnant financial results. Although many specialists do not expect 2012 to be much different from previous years, others believe that the local car market has potential for growth. The reason is that car ownership rates are at half the averages posted by Western European countries. “It is not normal for Romania to post sales of 80,000-90,000 units a year. Car ownership rates in Romania are about 250 units per 1,000 individuals compared with 500 in Western Europe. So the potential for growth on the Romanian car market is high for all auto brands,” said Thomas Dubruel, the commercial director of Automobile Dacia, recently, quoted by Mediafax. But Brent Valmar, vice-president of the Automotive Manufacturers and Importers Association (APIA), struck a more pessimistic tone in his analysis of the evolution of the car market at the Mediafax Talks on the Auto Industry event earlier this year. In his opinion, car market will continue its negative trend this year and the profits of distribution networks will be close to zero while the average profitability for the whole industry was negative in the first five months of this year. The crisis has also led to a consolidation of the number of authorized distributors of different car dealers, as many of them have closed their operations. According to the most recent market data, the number of registrations of new cars in Romania dropped by more than 42 percent in August on the same period of 2011 to slightly over 5,000 units. European Automobile Manufacturers’ Association (ACEA) data show that this indicator posted a decrease of 9.4 percent in the first eight months of 2012 to about
Car ownership rates in Romania are at half the averages posted by Western European countries
44,000 units. The same institution notes that the passenger car market in the European Union contracted by 7.1 percent over January-August from 8.9 million registrations to 8.26 million. Elsewhere, APIA reports that production and assembly activity in Romania dropped by 7.2 percent in the first eight months of this year on the same period of last year to 202,474 units; imports decreased by 15.9 percent to 43,015 units; exports increased by 3.6 percent to 197,734 units while total sales on the local market dropped by 19 percent to 56,853 units (sales include passenger cars, commercial vehicles and buses). At the end of June, Valmar of APIA told the Mediafax Talks about Auto Industry audience that in the first five
months of 2012 only 31 percent of car buyers were individuals compared to 45 percent last year. On the corporate segment the main customers are still international corporations that have financial resources to replace older vehicles. “The car market is heavily influenced by Romanians’ purchasing power and access to lending. During the boom from 2006-2008 both credits and leasing were generous and the conditions imposed on buyers were minimal. But since 2009 the lending market has frozen, for both car credit and leasing,” says Dragos Cabat, managing partner at efin.ro. He adds that the current lending conditions from commercial banks and IFNs are very restrictive about car credit. “As a result the segment of customers buying a car has shrunk dramatically and it
will continue to be formed of a very small segment of drivers with very high incomes (who buy new luxury cars) and a decreasing group of individuals on average incomes who buy either new but cheaper cars or second hand ones,” adds Cabat. He warns that there is no economic basis for expecting the local car market to pick up in the immediate future. “At present the local car market can be supported only by special strategies from manufacturers or dealers, such as payment by installments directly to them. Of course there is a higher risk of default for them and that’s why this system is not very popular. Another solution is to continue programs like Rabla (cash for clunkers) or other governmental incentives,” adds the managing partner.
www.business-review.ro Business Review | October 1 - 7, 2012 But the second hand car market projects that will be carried out seems to be growing. According to through this investment. And Renault data provided by the specialized site and Nissan Motor, its Japanese www.auto.ro, the number of second partner, have also announced that hand cars registered in Romania for they will invest EUR 1 billion at their the first time increased by 147 percent plant in Tanger, Morocco, in order to in the three months of summer to extend significantly its production. 46,217 units from 18,687 units posted “Africa is stabilizing. It is better to poin the same period of last year. Volk- sition ourselves now, in order to have swagen is the leader of the second new engines for growth as markets hand car market with 11,261 cars new become mature,” Jean-Christophe registrations in Romania this summer, Kugler, senior vice-president for the three times more than in the same pe- African region at Renault, told riod of 2011. It is followed by Opel Bloomberg. Renault’s strategy is to promote (9,124 units), Ford (5,883), Audi its “budget” brand Dacia in Africa, (2,898) and BMW (2,562). trying to compensate for the strong contraction of the European market. Manufacturers aim to move Meanwhile Asian companies that manufacture low-cost cars are aggresup a gear Despite the unfavorable international sively attacking Europe while and local contexts, representatives of premium carmakers like BMW Ford Romania say the company is and Mercedes-Benz are introducing signing contracts on a daily basis for smaller models. According to the the B-Max model manufactured in ACEA, the European car market has Craiova and estimate they will supply contracted for the fifth consecutive about 400-500 units on the local mar- year and will fall to its lowest volume ket by the end of the first quarter of since 1995 in 2012. 2013. According to Zoltan Brassai, gen- International scene in slow eral manager of Ford Romania, lane quoted by Mediafax, the company The international car market continwill produce 60,000 units in 2012 ues to struggle. The effects of the criwith this number due to increase in sis on the Euro zone’s auto industry 2013. Company representatives esti- could generate over 500,000 layoffs mated at the beginning of this year as carmakers and car parts manufacthat production would increase to turers seek to cut their costs and over 100,000 units in 2013. In May adapt their production capacity to the Ford Romania started production of difficult economic conditions in an atthe 1 liter EcoBust engine in Craiova. tempt to reduce their losses, says a Brassai said that Ford intended to pro- Bloomberg analysis. Moreover, the duce between 800,000 and 1.3 mil- car industry has cut about 800,000 lion propellers at plants in Romania jobs in the last five years. “It has beand Germany during 2012-2015. The come more obvious that production American carmaker announced at the and the number of employees of end of June that it would make a 1.5 some carmakers exceed the necessary liter engine in Craiova, with mass pro- capacity considering the drop in car duction starting at the beginning of sales in the Euro zone. The excess of next year. production capacity is the main probElsewhere, Mercedes-Benz re- lem. The low level of sales is killing cently launched its 35th authorized these companies,” says Ian Fletcher, sales and service center in Romania in analyst at IHS Automotive in London. partnership with ATP Exodus. The At present about 30 percent of the car new center in Oradea required an in- production capacity in Europe is unvestment of EUR 2.5 million and in- used. cludes a 2,200-sqm service center and The current crisis is affecting the a showroom. Last but not least, European operations of foreign comGoodyear Dunlop Tires Romania panies like Ford and Opel too. The Eulaunched a new Premio center with ropean division of Ford posted a USD its franchise partner, SC Total Service 404 million operational loss in the 2001 in Focsani. The company in- second quarter compared with a USD tends to accelerate its pace of rolling 176 million profit in the same period out the Premio franchise in Romania, of last year. Elsewhere Opel, part of launching an additional two storey- the American group General Motors service center in Alba Iulia and (GM), announced in June that from Alexandria by the second half 2016 it would close its Bochum plant of October. The total initial invest- in Germany. ment in launching over 26 Premio GM’s European operations have centers in Romania exceeds EUR 10 posted USD 16.4 billion of losses since million. 1999. Meanwhile BMW is continuing Meanwhile, Renault Group, the to create new jobs by opening a plant owner of Dacia, will invest over EUR in Leipzig next year where 800 em250 million in Romania this year. A ro- ployees will work on the i3 electric botized line of high tonnage presses, car. The German group has created measures to double the capacity of more than 5,000 jobs in the past 12 the aluminum cast house and others months. to increase the gearshift production capacity by 30 percent are among the anda.sebesi@business-review.ro
AUTO MARKET 9
www.business-review.ro Business Review | October 1 - 7, 2012
10 LINKS
Telecom tender brings 4G within reach The telecom tender which awarded the highest amount of spectrum ever granted in Romania in one sitting has come to an end, raising in total EUR 682 million for the state budget. Now they have secured their resources for the next 15 years, some operators have already announced their intentions to launch 4G, which is just around the corner. ∫ OTILIA HARAGA
Photo: Laurentiu Obae
“Mobile communications are entering a new age in Romania, following this tender: spectrum resources available to operators have increased by 77 percent and allow the introduction of 4G technology, and the distribution of the 900 MHz band is more efficient,” said Catalin Marinescu, president of telecom regulator ANCOM. The five contenders in the tender – Orange Romania, Vodafone Romania, Cosmote Romania, RCS&RDS and 2K Telecom – successfully bid for a total of 485 MHz in four frequencies: 800 Inaki Berroeta Jean Francois Fallacher Stefanos Theocharopoulos MHz, 900 MHz, 1800 MHz and 2600 CEO of Vodafone Romania CEO Orange Romania CEO Cosmote Romania MHz. Orange Romania will pay in total “Vodafone will be able to launch 4G “We are planning to start 4G services “Through this substantial spectrum EUR 227,135,002, after boosting its services for its customers in early 2013 before the end of this year, pending that we have secured for the spectrum resources by 84 percent. (…). We already have a testing license the approval of the authorities, and following 15 years starting 2014, The operator won two blocks in the for 4G and we will shortly start runfrom April 2014 we will be able to offer we made sure we can continue 800 MHz bandwidth, two blocks in ning tests in our network. We hope 4G services at the highest efficiency. to meet the strong competitive 900 MHz, four blocks in 1800 MHz that the Romanian authorities will We will start with 4G in Bucharest and challenges we see coming. (…) and four blocks in 2600 MHz, valid for ensure a predictable and supportive then extend it to the rest of the country. We believe that telecom is one the timeframe 2014-2029. environment for industry We will be launching mass-market of the major drivers of the The company also won short-term investments.” services at affordable prices.” country’s economy (...).” licenses: five blocks in the 900 MHz bandwidth and three blocks in the 1800 MHz bandwidth, valid between The operator gained access to the 900 “Acquiring the licenses is an impor- works of modernization, the success January 1, 2013 and April 5, 2014. MHz range after winning one block in tant step, based on calculations re- of commercial offers and so on,” DraMeanwhile, Vodafone Romania this frequency, valid for the period be- garding future revenues that can be gos Enescu, marketing director in 2K will pay EUR 228,520,034, managing tween 2014 and 2029. obtained by exploiting these. Accord- Telecom, told BR. to hike its spectrum portfolio by 78 License taxes will be paid by the The newest contender on the mar- ing to these calculations, financing is percent. ket, 2K Telecom, will pay EUR always ensured by a mix between the winners in two stages, first by NovemThe firm took two blocks in the 6,601,000 in license taxes for two resources of the company and bank ber 30, 2012 and then by June 30, 2013. 800 MHz range, two blocks in 900 blocks of 15 MHz each in the 2600 loans, which varies from year to year However, this does not necessarily MHz, six blocks in 1800 MHz and one MHz frequency, valid over 2014- 2029. depending on various factors such as mean the market has been settled for block of 15 MHz in the 2600 MHz frequency, valid for 2014-2029. The operator also won short-term licenses: five blocks in the 900 MHz range and three blocks in the 1800 Frequency Validity Cosmote Orange RCS&RDS Vodafone 2KTelecom MHz one, valid between January 1, 2013 and April 5, 2014. 800 MHz 06.04-2014-05.04.2029 2 x 5 MHz 2 x 10 MHz 2 x 10 MHz Elsewhere, Cosmote Romania paid EUR 179,880,000 in license taxes, 900 MHz 01.01.2013-05.04.2014 2 x 12.5 MHz 2 x 12.5 MHz growing its spectrum resources by 58 900 MHz 06.04.2014-05.04.2029 2 X 10 MHZ 2 x 10 MHz 2 x 5 MHz 2 x 10 MHz percent. The operator acquired one 1800 MHz 01.01.2013-05.04.2014 2 x 15 MHz 2 x 15 MHz block in 800 Mhz, two blocks in 900 1800 MHz 06.04.2014-05.04.2029 2 x 25 MHz 2 x 20 MHz 2 x 30 MHz Mhz, five blocks in 1800 Mhz and two blocks in 2600 Mhz, valid for the time2600 MHz 06.04.2014-05.04.2029 2 x 10 MHz 2 x 20 MHz frame 2014-2029. 2600 MHz 06.04.2014-05.04.2029 1x 15 MHz 1x 30 MHz RCS&RDS committed to pay EUR 40 million for the licenses, expanding Selling price (EUR) 179,880,000 227,135,002 40,000,000 228,520,034 6,601,000 its spectrum portfolio by 29 percent.
Orange, Vodafone and Cosmote, top spectrum buyers
www.business-review.ro Business Review | October 1 - 7, 2012
4G services in Romania are just around the corner There are grounds to believe that 4G will be implemented very soon in Romania, says Marinescu. “Operators may implement 4G as soon as this year, but if not in 2012, next year for sure,” he said. The operators have already confirmed in official statements their interest in the launch of 4G services in Romania. Thus, Orange announced that it would launch 4G services by the end of the year in the 1800 MHz frequency. “Orange has won all the spectrum needed in all categories. We are planning to start 4G services before the end of this year, pending the approval of the authorities, and from April 2014 we will be able to offer 4G services at the highest efficiency. We will start with 4G in Bucharest and then extend it to the rest of the country. We will be launching mass-market services at affordable prices,” said Jean-Francois Fallacher, CEO of Orange Romania. The company has already performed the first tests. “We already had an implementation of 4G services when we measured the maximum performances of the service; more precisely, we reached speeds of 100 Mbps and measured parameters such as latency. I could not say that the implementation of 4G is much more complicated than the 3G implementa-
Courtesy of ANCOM
good: according to the law, any of these licenses can be ceded totally or partially to another operator, with the agreement of the telecom authority. Following the tender, 676 rural towns and villages that are so far uncovered by broadband will get coverage with HSPA, HSPA+ and LTE (4G) networks as the operators have committed to a plan to provide this coverage. Three of the contenders, Cosmote Romania, RCS&RDS and 2K Telecom, also assumed the obligation of hosting mobile virtual network operators (MVNO). “For the operators, the results of the auction open supplementary business and innovation opportunities, and ensure both the security of investments and exceptional efficiency in using the spectrum. For users, the auction brings access to four national networks, with better coverage, higher data transfer speeds, and generally more, better and more affordable services, in the setting of healthy competition,” concluded Marinescu. This positive view is shared by the minister of communications, Dan Nica, who said the auction “stands as proof that we could organize to international standards the most extensive tender in Romanian telecom history.” “The Romanian state will cash over EUR 682 million in license costs alone. Add to these the investments that will be made, and we can talk of more than EUR 1 billion,” said Nica after the results of the tender were announced.
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The results were announced by Catalin Marinescu, president of ANCOM
tion we are doing at the moment. Of course, since we are talking about data, the process of optimizing the network will have to be a very precise and rigorous one,” said Madalina Suceveanu, CTO of Orange Romania. Vodafone Romania also announced a timeframe for a 4G launch in its network. “We are very satisfied with the auction outcome which ensures the spectrum that we need to carry on with our LTE-based mobile data strategy. Vodafone will be able to launch 4G services for its customers in early 2013 (…). We already have a testing license for 4G and we will shortly start running tests in our network. At the same time, in view of the long-term commitment we have made by acquiring the spectrum until 2029, we hope that the Romanian authorities will ensure a predictable and supportive environment for industry investments,” said Inaki Berroeta, CEO of Vodafone Romania. During the auction, Cosmote secured 50 x 2 MHz of spectrum, which is “fully aligned with the company’s auction targets and strategy, able to accommodate the long-term network needs for development and capacity for all technologies (2G/3G/4G),” said
682
million euros will go to the Romanian state after the spectrum tender
“The Romanian market can accommodate a new investor” Catalin Marinescu, ANCOM the company in an official statement. Before the bid, RCS&RDS also announced its interest in supplying 4G to its customers. “We will certainly want to acquire licenses for the lower frequencies of 800 MHz and 900 MHz,” said Valentin Popoviciu, business development manager at RCS&RDS before the auction. Following the tender, RCS & RDS gained access to 900 MHz after winning 2 x 5 MHz in this frequency, valid for the period between 2014 and 2029. “The acquisition of the 900 MHz frequency corresponds to our intentions of development and expansion. This frequency will allow us to cover 98 percent of the Romanian territory and bring voice and mobile data to a greater pool of users (...). We estimate considerable growth in competition on the market of mobile communications,” Dragos Spataru, manager business unit voice RCS & RDS told BR. “We are also very interested in 4G and in the new services that can be launched based on this technology,” he also added. Not all the spectrum that went under the hammer was eventually sold during the procedure. There is still 90 MHz available (one block of 10 MHz in the 800 MHz bandwidth and
eight blocks of 10 MHz in the 2600 MHz one). The reason they failed to sell is that “there was a great deal of spectrum put up for sale, at the same time” said Marinescu, who pointed out that this is not unusual. “In many countries, the 2600 MHz spectrum was not allocated in its entirety.” This means that there is still room for one more player, at least in theory. “We could conclude that the Romanian market can accommodate a new investor,” said Marinescu. In fact, a possible move of RCS&RDS would be to try and acquire that spectrum that is still available to boost its portfolio, if ANCOM takes that out for auction at one point. The fifth contender that took part in the bidding, 2K Telecom, also opened up to BR about future plans involving the acquired licenses. “2K Telecom is already offering data services of the 4G-type using the alternative technology WiMax. We offer these services both under our own brand Idilis, as well as by resale to other telecom operators, a model generally known as MVNO. The newly acquired spectrum will be integrated into these two strategic directions of our company: first, specializing in building and maintaining modern telecommunications networks, especially networks of the type 4G LTE and second, opening up these networks to the other operators as part of collaboration models in which each firm enhances its own competencies,” said Enescu. otilia.haraga@business-review.ro Find out more about 4G services in Romania during the BR event Focus on Telecom on October 11.
www.business-review.ro Business Review | October 1 - 7, 2012
12 CITY
Houses with a history Keep your eyes wide open! Expert on historic houses Valentin Mandache takes you on an architectural tour reveling the hidden gems of the historic buildings in the central Dacia boulevard area.
The imposing villa which hosted the Iraqi emabassy during the communist regime
External food lift
Abandoned historic villa
Ironwork window decoration
∫ ANCA IONITA
All photos: Silviu Pal
Recently renovated, this Belle-Eopque style building on Dacia boulverd is surrounded by Modernist style houses built in the early 1930s
With a deep knowledge of the architectural heritage and traditional habitats of Romania’s historical provinces, Valentin Mandache is passionately in love with Bucharest’s old houses, which he profiles weekly in his architectural tours that feature on his weblog, Historic Houses of Romania. Last week I signed up for a fascinating two-hour walking tour of the Dacia Boulevard area, on which I discovered a totally new and hitherto unknown city to me, a Bucharest-born citizen who claims to have some knowledge of the architectural styles and historic houses of her native town! Packed with evocative historic buildings, especially of the Neo-Romanian type, along with Art Deco and inter-war Modernist styles, the Dacia area “encompasses Little Paris designs, which are mainly French-inspired historicist architectures from La Belle Epoque period,” says Mandache,
Gate with a tree of life motif
while pointing out small design details on a door handle or the ironwork of a gate or garage door. The starting point of our trip was the French Institute building, a Belle-Epoque construction. Just across the street is the silhouette of the grand house which hosted the Iraqi Embassy in the communist regime, a reminder of the wealth of local land owners at the end of the 19th century in a mainly agricultural economy. The added value of this tour, which I strongly recommend to anyone living in Bucharest, is the combined architectural and socio-economic perspective that Mandache shares on each house he presents, backed by solid philosophical, design and religious knowledge. A graduate of the London School of Economics specializing in economics and history, Valentin Mandache is an expert on period and traditional properties in Romania. More info about the tours can be found at www.historo.wordpress.com anca.ionita@business-review.ro
www.business-review.ro Business Review | October 1 - 7, 2012
CITY 13
Night of animated movies Must-see concerts in October ∫ OANA VASILIU celebrates bad taste Those who have the courage to leave their modesty and propriety at the door of the seventh edition of the Anim’est festival are in for an evening of surprises. The Night of the Animated Bad Taste is a road show created by HAFF (the Holland Animation Film Festival), powered by the Dutch film critic Jan Doense.
Courtesy of Anim’est
The Secret World of Arrietty - ANIMASH section
∫ OANA VASILIU On October 6, from 23:00, a deliciously kitsch and erotic night awaits the most uninhibited fans of animation, at Patria Cinema. Genres covered will include early pornographic movies, underground films, commercial stereotypes, trailers, fantasy, failed art films, plus re-animated Beatles videos in a Hanna & Barbera style, the Soviet version of Goofy, Captain America and Popeye as response to "global Disney-fication", Popeye facing the Japanese enemy in 1940s antipropaganda clips and failed commercials for junk food in the 1930s. The eclectic collection encompasses all techniques and styles, including hand drawn, puppet and computer animation, and invites the viewer to wonder what bad taste really means. The event includes the Anim'est Grand Trophy for which 45 international films will compete. The festival also has two special sections for Romanian and Balkan films, which will see 35 short films in contention. Romanian animation is represented in this year’s contest with 21 titles. Two of the animators who competed last year in this section are
returning – Andra Berila, with Cloudman and Torok Tihamer with Playground. Codrin Iftodi, editor of Outrageously Disco, has entered Mobilfonul / The Mobile Phone, while The Little Dark by Victor Ionescu is included in both sections. One of the stars of the event is Oh Willy..., a Belgian animated film by Emma de Swaef and Marc James Roels, which comes to Anim'est after competing at a prestigious festival in Clermont Ferrand and having been nominated for the Cartoon d'Or, the most important European award for animated short films. Another Cartoon d'Or finalist is Edmond était un âne/Edmond Was a Donkey, directed by Franck Dion, the story of a quiet man who begins to discover how different he is. From the Annecy Festival competition, the largest of its kind in Europe, comes Father, a BulgarianCroatian-German co-production by Ivan Bogdanov, Moritz Mayerhofer, Asparuh Petrov, Veljko Popovic, Rositsa Raleva and Dmitry Yagodina, which explores the things left unsaid between fathers and children. The event is organized with the support of the Netherlands Embassy in Romania. Tickets can be bought from the TicketFan network. oana.vasiliu@business-review.ro
October is set to be a busy month for Bucharest’s pop and rock fans. The first to arrive will be The Cranberries, who will bring their Roses tour to town on October 11, with a gig at Romexpo. This is the Irish band’s second visit to Romania and they will be promoting their latest album, which features the songs Tomorrow, Fire and Soul, Schizophrenic Playboy and Show Me the Way. The Cranberries Next up, 70s UK legends Status Roses Tour on October 19, Romexpo Quo will play Romania for the first time in a concert at Sala Palatului on see the one-man show Gianni Luigi October 17. Fans will have the chance to rock Morandi. His Romanian debut promout to the band’s classic hits and new ises to be an entertaining evening on material from their recent album, October 27, at Sala Palatului. The month will end on an upbeat Quid Pro Quo. Moving to the harder end of the note, when Dutch BZN rock Sala spectrum, Swedish rock metal outfit Palatului on October 28. Band Zonder Naam, which means Therion is on tour to mark the band’s “band without a name” in Dutch, 25-year music career. Their concert will take place began playing in the 60s, with songs on October 19, at Arenele Romane, like Blue Eyes, Just An Illusion and where local fans can enjoy the We All Will Dance making them an inlikes of Lemuria, Summernight City ternational name in the charts alongand ToMega Therion for the third side the like of The Rolling Stones, ABBA, and The Beatles. time. Striking a mellower tone, lovers of nostalgic Italian pop can finally oana.vasiliu@business-review.ro
www.business-review.ro Business Review | October 1 - 7, 2012
14 CITY
CULTURAL EVENTS CALENDAR
WHO’S NEWS
EXHIBITION
October 21, 19.00 – Carmen, French language performance in four acts
BR welcomes information for Who’s News. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro
October 25, 19.00 – Turandot, Italian language performance in three acts.
Jose Reino da Costa
Tomas Nagy
has been approved by the National Bank of Romania to begin his mandate as the new CEO of Millennium Bank Romania.The 48year-old was appointed by the board of directors at Millennium Bank Romania to replace Jose Toscano, who has concluded his six-year tenure. Costa has been an associate of Millennium bcp group for almost 14 years and has worked in Portugal, Macau, and Angola. For the last four years, he had served as CEO of Millennium Bank Angola.
is the new country CFO for ABB in Romania and Bulgaria based in Sofia. After graduating from the Faculty of Macroeconomics at the Economy University in Bratislava, he began his career with ABB in Slovakia as a treasurer in 1999. In July 2001, he became a department manager of the finance and accounting department and from January 2004 until April 2010 he was country CFO and head of finance and the internal services division at ABB Slovakia.
Mihai Macelaru
is the new local division manager for low voltage products for ABB in Romania, Bulgaria and the Republic of Moldavia. He has an engineering degree from the Technical University in Karlsruhe, Germany. He began his career with the firm in 1992 as a production and project engineer. Between 1996 and 1998 he served as GM of ABB Control Ltd in Bulgaria. Since 1998 Neureither has held various management positions at ABB in Germany.
Art and Landscape, third edition The French Institute / Verona Square / Gara de Nord September 27 – October 7 The theme of this year’s edition of Art and Landscape is the musicality and identity of different landscapes. Some spaces, such as urban squares, commercial areas, streets, villages, boulevards and forests, are presented at this exhibition with their own sonic vibe. Another experience is the transformation of sounds into images, an invitation to a silent concert, which will take place on Verona Square. Gara de Nord will play host to some wicker installations, along with bells that will ring if the wind blows, creating a special sound for the station.
PERFORMANCE Opera October 5, 18.30 – Le Nozze di Figaro, Italian language performance in two acts October 6, 18.30 – Aida, Italian language performance in four acts October 11, 19.00 – Romeo. Tango and Juliet, contemporary dance performance October 12, 19.00 – La Boheme, Italian language performance in four acts October 13, 18.00 – Lohengrin, German language performance in three acts October 17, 19.00 – Don Quijote, performance in four acts
BALLET October 4, 19.00 – La Bayadere, ballet October 28, 19.00 – Giselle, ballet
George Georgescu – 125 years of existence October 4-5 The Romanian Athenaeum The George Enescu Philharmonic is celebrating the life of George Georgescu, one of the greatest Romanian conductors, with two extraordinary concerts. Horia Andreescu will conduct Valentin Gheorghiu (soloist), Adela Zaharia (soprano), Carmen Topciu (mezzo soprano), Cristian Mogosanu (tenor) and Marius Bolos (bas). The event is being held in cooperation with the Romanian Cultural Institute.
has joined Noerr as associated partner in the company’s corporate /M&A department. He has vast professional experience in structuring and organizing due diligence cases, preparing the necessary documentation and negotiating M&A transactions, greenfield investments and corporate restructuring.
FESTIVAL
Lucian Mihai
Tea and Coffee Festival October 1-7 Serendipity, Infinitea, Godot Café Theatre, Café Verona, Ramayana Café, Bell’Agio Casa, Cafepedia
October 19, 19.00 – Madame Butterfly, Italian language performance in three acts
The tea houses of Bucharest invite lovers of hot beverages on a weeklong gourmand tour of the world that will delight their senses. Each day of the festival is dedicated to a specific country or theme, as follows: South Korea, 5 o’clock, Argentina, Japan, India, Brazil and Turkey. Workshops, dances, brewing secrets and an expo will also feature.
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
October 18, 19.00 – La Traviata, Italian language performance in four acts
has joined business consultancy law firm RTPR Allen & Overy as counsel. A PhD and university professor, he is a former president of the commission for drafting the new Civil Code and the Law for its Enactment, former president of the Romanian Constitutional Court and member of the Venice Commission. For RTPR, in association with Allen & Overy, he will contribute to the development of the intellectual property and litigation area, including arbitration.
PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Ana-Maria Stanca SALES & EVENTS Ana-Maria Nedelcu RESEARCH Catalina Costiuc SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat
Ekkehard Neureither
Pavel Chronc is the new cluster HR manager for ABB Romania, Bulgaria and the Republic of Moldova and country HR manager for ABB in Bulgaria. He joined the company in 2006 as an HR center manager. He has most recently been working as an HR business partner for ABB in Brno, Czech Republic. He is located in Rakovski, Bulgaria, in the Plovdiv area.
PUBLISHER Bloc Notes Media ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 EMAILS Editorial: editorial@business-review.ro Sales: sales@business-review.ro Events: events@business-review.ro