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Outsourcing plants won’t leave Romania because of crisis, SME minister says

Minister of Small and Medium-sized Enterprises (SMEs), Trade and Business Climate Constantin Nita says that the factories working in outsourcing system will not leave Romania because of the economic downturn, but on the contrary, many other foreign companies might move their business here.

Paradoxically, the economic crisis can be an advantage to Romania, because the local manpower has a reasonable price, Minister Nita said when attending the opening of the Enterprisers’ Day, in Targu Secuiesc (central Romania), on Friday.

‘Many factories from Germany, but also from other western countries are relocating their business to Romania, which is a good thing (…)
Outsourcing will never extinct as long as manpower’s price is kept at a suitable price and the profit will be reasonable,’ the minister said.

Central Romanian Covasna County currently numbers 13 trousers makers, and most of them have a foreign main shareholder and work in the outsourcing system, reason why it has won the fame of the ‘Trousers’ Valley.

About 10,000 people were working in these plants, situated in the vicinity of the towns Sfantul Gheorghe and Targu Secuiesc, a year before, and they put out more than 30,000 pairs of trousers, every day, most of them going to export, but the economic downturn has also reached the sector.

Several companies had to curb the number of their employees after the orders dropped, both on the home and the foreign market.


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