Incoterms when importing products from British or European manufacturers
5 December 2024
Romanian manufacturers helped, Romania has steadily established itself as a critical player in Europe’s industrial landscape, leveraging its strategic location, abundant natural resources, and skilled labor force. Known for its robust manufacturing and production capabilities, Romania has become a hub for industries ranging from automotive and electronics to textiles and agriculture.
This article explores Romania’s key industries, the regions driving its growth, leading companies, and its export performance compared to the European Union (EU) and the United Kingdom (UK).
Key Industrial Sectors in Romania
1. Automotive Industry
Romania’s automotive sector is one of its largest and most dynamic, contributing significantly to the country’s GDP and exports. The industry encompasses vehicle manufacturing, component production, and engineering services.
- Key Companies:
- Dacia (Renault Group): Headquartered in Mioveni, Argeș County, Dacia is Romania’s largest car manufacturer, producing vehicles like the Duster and Sandero, which are exported globally.
- Ford Romania: Based in Craiova, Ford specializes in producing small SUVs and engines, supplying both European and global markets.
- Continental AG and Bosch: These global giants have extensive operations in Romania, producing automotive components.
- Statistics: In 2023, the automotive sector accounted for approximately 27% of Romania’s total exports, valued at over €18 billion.
2. Electronics and IT
Romania has a rapidly growing electronics and IT industry, benefiting from a skilled workforce and increasing foreign investments.
- Key Companies:
- Flextronics: Operating in Timișoara, this company specializes in manufacturing electronics for global markets.
- Bitdefender: A Romanian cybersecurity leader, exporting software solutions worldwide.
- Statistics: Electronics and IT contributed €6 billion to exports in 2023, making Romania a significant player in Europe’s tech ecosystem.
3. Textile and Apparel Industry
Romania has a long tradition in textiles and apparel, offering high-quality products that cater to European and international markets.
- Key Companies:
- Romanofir: Known for producing traditional Romanian textiles.
- Pasmatex: A major supplier of textiles for industrial and fashion use.
- Regional Focus: The regions of Bucharest-Ilfov, Cluj, and Iași are hubs for textile production.
- Statistics: Textile exports reached €3 billion in 2023, with key markets including Italy, Germany, and France.
4. Agriculture and Food Processing
Romania’s agricultural resources make it a top producer of cereals, sunflower oil, and wine in Europe. The food processing sector complements this, exporting a wide range of products.
- Key Companies:
- Bunge Romania: Specializing in sunflower oil production.
- Cramele Recaș: A prominent winery exporting Romanian wines globally.
- Statistics: In 2023, agriculture and food products made up 14% of Romania’s exports, valued at €9 billion.
5. Energy and Mining
Rich in natural resources, Romania is a significant producer of oil, natural gas, and coal, alongside renewable energy advancements.
- Key Companies:
- OMV Petrom: The largest oil and gas producer in Southeastern Europe.
- Hidroelectrica: A leader in renewable energy, particularly hydropower.
- Statistics: Energy exports contributed €4 billion in 2023, with Romania increasingly focusing on green energy.
Regional Industrial Hubs
- Bucharest-Ilfov: A center for IT, electronics, and automotive.
- Cluj-Napoca: A hub for technology and innovation.
- Timișoara: Known for electronics and automotive components.
- Ploiești: A key region for oil and gas.
- Brașov: A major hub for machinery and aerospace.
Romania’s Export Performance Compared to the EU and UK
Romania’s Total Exports
In 2023, Romania’s exports reached approximately €92 billion, representing a steady growth rate of 8% annually over the past decade.
- Key Export Partners:
- European Union: 77% of Romania’s exports go to EU countries, with Germany, Italy, and France as the top destinations.
- United Kingdom: Exports to the UK amounted to €4.5 billion, with significant growth in automotive and electronics sectors.
Comparison with the European Union
- Romania’s export-to-GDP ratio is 42%, slightly below the EU average of 47%, reflecting its developing status but growing competitiveness.
- In automotive exports, Romania ranks among the top 10 EU countries, surpassing nations like Hungary and Slovakia in terms of volume.
Comparison with the United Kingdom
- While Romania’s total exports are smaller than the UK’s (€92 billion vs. €410 billion in 2023), its manufacturing exports have grown faster due to lower labor costs and strategic positioning in the EU market.
- Key sectors like textiles and automotive are increasingly capturing market share in the UK.
Foreign Investments and Future Prospects
Romania continues to attract significant foreign direct investment (FDI), with inflows exceeding €9 billion in 2023.
- Automotive: Increased investments from companies like Tesla and Stellantis for component manufacturing.
- Renewable Energy: A growing focus on wind and solar energy projects.
Opportunities Ahead
- EU Funding: Romania benefits from substantial EU funding, with €30 billion allocated for industrial and infrastructure development between 2021 and 2027.
- Supply Chain Shifts: As European manufacturers seek to reduce dependency on Asia, Romania’s proximity to major markets offers a strategic advantage.
Romania’s industry is a vital pillar of its economy and a rising force in European manufacturing. With strong sectors like automotive, IT, and agriculture, the country is well-positioned to compete globally. For businesses in the EU and UK, Romania offers a reliable and cost-effective alternative for sourcing high-quality products and services.
Corrios.com, as a platform, bridges the gap between Romanian manufacturers and international buyers, making it easier to leverage Romania’s industrial strengths for mutual growth.
