UK investment: from Britain to Romania to the World

British companies are not just investing in Romania to reach the Romanian market. The new business model is to invest in Romania to reach markets across the world. Why? Because Romania’s workforce is among the best and most competitive in Europe.

I saw two examples on visits to Brasov and Sibiu last week. GlaxoSmithKline established a factory in Brasov in 2003 to serve the Romanian market, employing over 200 people. 42% of them have a university education. GSK’s management in Britain told me that they consider their chemical engineers in Brasov to be amongst the best in the world. The Brasov site has become one of the most successful in GSK’s network, with very impressive results in processing, stock management, safety standards and quality assurance. So GSK now uses the site to produce pharmaceuticals for export markets, not just the Romanian one. Last year GSK Brasov exported almost $100 million of medicines to 50 countries. This year it is exporting to 90.

Ambassador Harris visited GSK facilities in Brasov, Central Romania

Both the UK and Romania depend on growth in exports for economic recovery. Romanian exports are low as a percentage of GDP compared with the EU average (31% compared to 37.6%) But British investors like GSK are helping to put that right.

Ambassador Harris met with Sibiu Prefect Horatiu Racuciu

I saw the same model in Sibiu where a British company Fusion has set up a distribution centre for its water and gas piping products. Again the intention was to service the Romanian market, but the company now plans to invest in the Sibiu site to transform it into a logistics hub for certain Fusion products servicing markets across the world. And again, Fusion’s managers have found that the quality of its staff is one of its greatest assets in Romania. The young man who they recruited in Sibiu in 1997 to be their sales representative in Romania has just been appointed as their Director for Exports worldwide!