INDUSTRY
By courtesy of the National Institute of Statistics and
Ministry of Economy and Commerce
During 2000-2003 the industrial output achieved by the economic
agents maintained its positive trend initiated in 2000. The industrial evolution after
2000 was strongly supported by the industrial policy of the government, which pursued the
improvement of the business environment, export and investment stimulation, setting up and
making functional market mechanisms, as well as the acceleration of privatisation and
restructuring of the industrial sector.
This
contributed to the stock reductions in the context of an increase in attracting
investment, which permitted a better adjustment of the economic agents to the needs and
exigencies of the domestic and external market.
The main aims
of the economic policy, connected with these options, envisaged the following issues:
- accelerating
the restructuring process of the commercial companies and autonomous bodies, by
modernising and developing the high competitive economic agents, together with the
reorientation and resizing the partly or total closure of the production units without
certain deliveries;
- reinitiating
the investment process, by a significant interest from the domestic capital, as well as
through attracting of a significant volume of foreign investment;
- stimulating
of the industrial output increase, by encouraging the setting up of industrial parks and
promoting the investment with strong impact on economy;
- the increase
in the export efficiency and volume of the industrial products and services;
- the
enforcement of the restructuring programs agreed with the EU and with other financial
international organisations as The World Bank and International Monetary Fund;
- designing and
implementing the sectoral strategies - for development or for re-size - the main
sub-sectors as metallurgy, oil industry, wood processing and furniture industry, electric
machinery and devices for the domestic use and other;
- developing,
modernising, privatizating the national energy system on the basis of a long-term
strategy;
- continuing
the closure process of the unproductive mines and quarries.
The main
features of the industrial activity were reflected in the positive evolution of the
industrial output. Industrial production achieved in December 2003 has increased as
against similar month of 2002 by 2.6%.
By sections
over this level were the indices for durable goods industry (10.4%) and intermediate goods
industry (3.8%).
Industrial
production of mining and quarrying has expanded, higher than the general index on the
basis of results recorded in the sector coal mining and preparation (increased with 22.5%
in December 2003 faced to the same period from 2002).
The index of
main manufacturing products increased significantly, such as: for radio, TV and
communication equipment and apparatus by 60.8%; for publishing house, polygraph, recording
and copying by 29.5%; for rubber and plastics by 28.5%; for textile products by 26.2%; for
wood and wooden products processing (by 20.3%), excluding furniture.
In December
2003 compared with previous period from 2002 in electricity and thermal power, gas and
water the production index decreased by 2.3%.
Total turnover
of enterprises having industry as their activity has increased in real terms by 4.5% in
2003 as against corresponding month from 2002.
The industrial
production continued its positive trend; in 2004, the industrial production was 5.3%
higher than the one of the year 2003.
Gross index
industrial production registered a growth of 2% in 2005 as against 2004; in manufacturing
gross index was 102.5 %.
In December
2005, in comparison with December 2004 gross index of industrial production increased by
2.2%
Labour
productivity in industry was by 5.2% higher in 2005 as against 2004.
Total
turnover1) of enterprises having industry as their main activity registered in 2005, in
real terms, a growth of 3.6% as against the previous year; in December 2005, as compared
to December 2004, total turnover increased by 1.7%.
During
1.I.-31.V.2006, industrial production registered a positive evolution as against
the same period of the previous year, unadjusted index being 105.9% per total industry and
106.3% at level of manufacturing. In May 2006, the index was 115.7% per total industry as
against the same month of the previous year.
Total
turnover1) of enterprises having industry as main activity registered during
1.I.-31.V.2006, in real terms, a growth of 4.2% as against 1.I.-31.V.2005; in May 2006, as
compared to May 2005, total turnover increased by 5.7%.
Labour
productivity in industry registered a growth of 9.9% during 1.I.-31.V.2006 as compared
to 1.I.-31.V.2005.
1) Total
turnover comes from main activity and from secondary activities of industrial type
enterprises.
Industrial production indices, by sections*)
previous year=100
*) Gross series.
Turnover
volume indices in industry
The processing industry is the main component of the Romanian industry,
covering about 80% of activity, involving about 1.5 million persons from all around the
country.
The
figure below presents the structure of the Romanian industrial activities
Source of data: Ministry of Economy and
Commerce
The actual structure of the Romanian processing industry is presented in
the figure below.
The
relative low percentage of sectors producing high added value products and the relatively
high percentage of resources consuming industries can be noticed.
Source
of data: Ministry of Economy and Commerce
Ministry of Economy and Commerce - Policy direction for Processing Industry
Considering the market competition as driver for
development, the activities capitalizing comparative and competitive advantages will have
higher rates of growth, in comparison with other sectors.
The
comparative and competitive analysis advantages of Romania made possible the following
consideration:
a)
From the point of view of human resources within the university education system, as well
as of the experience within the research-development in high tech sectors
This
comparative advantage will determine an impulse of activity within the following domains:
-
development of the IT sector and of related services;
- training programs and the transfer of competence;
- development of industrial or technological system design, testing services specific for
the sector, software development, IT end-to-end solutions, etc.;
- economic concentrations of clusters, having as objective to extend new services, to
enter new markets, to raise the value of services towards creative innovative and complex
projects;
- intensification of the technological transfer by involving the research - development -
innovating structures and of the research - development component from universities in the
industrial activity.
b)
From the point of view of the existence of some quality natural resources, at competitive
costs (oil, natural gases, salt, wood, clays, sands, marble), as well as the agriculture
and forest potential
The
development of industries related to advanced processing of raw materials is estimated as
follows:
-
Sub-sectors within chemistry and petrol-chemistry (oils, fuel, plastic materials, rubber,
etc.);
- furniture, including ecologic furniture, based on Romanian creation and design;
- glass and ceramics industry, as well as construction materials;
- production of bio-fuels;
- processing of plants for industry;
- clothing from natural yarns and fibers (flax, hemp, wool);
- development of the tools and equipment sector for agriculture, forest and food
industries;
- handicraft activities.
c)
From the point of view of the industrial infrastructure (capacities, qualified personnel,
tradition, market)
Under
these circumstances, a series of industrial sectors will further develop and consolidate,
while new complementary activities with European companies will appear.
Positive
evolutions are estimated for the following sub-sectors:
-
automotive industry, including the automotive components sector;
- naval construction, including components;
- equipment and industrial components for the chemical and petrochemical industry, natural
gases and electricity;
- textile and leather confection, based on Romanian creation and brands.
It
is estimated that industries benefiting from comparative advantages, such as raw material
sources or infrastructures could, in conditions of quality equipment and good management,
occupy dominant positions on the internal market, as well as on important export sectors.
d)
Geographic position of Romania, with rapid access to large international basins of mineral
resources
This
advantage can determine the consolidation of some industries:
- iron and steel industry specialized on the execution of highly processed products
(sheets for the automotive industry, strips for the chemical, food industry and packing,
alloyed and high-alloyed steels for the machine building industry)
- aluminum and non-ferrous materials for advance processed products used in the
electronics, electro-technical industry and machine building industry;
- lacquers and paints industry.
These
comparative and competitive advantages, together with the existence of a big domestic
market in south-eastern Europe can be a determinant factor in consolidating the
traditional industries in Romania and in the appearance of some new activities.
For more information: http://www.minind.ro; http://www.mincom.ro
-
the official web sites of the Ministry of Economy and Commerce
Production
of main industrial products
Source of data: National Institute of Statistics
1) Provisional data.
2) Includes thermal energy production achieved
by self producers and consumed for own industrial activity.
In 2005, main
resources of primary energy accounted for 41,753.8 thou tons equivalent oil (Conventional
fuel with calorific power of 10000 kcal/kg), of which 24,783.6 thou tons equivalent oil
from domestic market.
Main
resources of primary energy, during 1.I.-31.V.2006, amounted to 17,886.3 thousand tons
equivalent oil (Conventional fuel with calorific power of 10000 kcal/kg), of which
10,510.6 thousand tons equivalent oil of domestic production.
Main energy power producers
& oil and natural gas sector
Thermo-power
stations. Termoelectrica - the country's main energy power and heating generator, is part
of a state owned holding. Regarding the installed energy power by fuel structure, there
are power stations that generate coal-based energy power (lignite and hard coal) - 34.8%
and hydrocarbons-based energy power - 65.2%. During 2004, the lignite-based energy
activity was restructured and reorganized, by setting up three power complexes where the
mines are working together with power supply as producer cost center. More than 50% of
electricity is produced in thermo system
Hydro-power
stations. Hidroelectrica is managing 349 power stations and 5 stations of energy pumping
with a production in a hydrological average year of 17,301.58 GWh
Nuclear
electric stations. The Nuclear Unit nr. I from Cernavoda supplies about 10% of the
Romanian energy power consumption, thus avoiding annual imports of about 1.4 million tones
of fuel and saving about 110 million US $ annually
Balance
of electric energy, 2005:
Oil and natural gas sector (2005)
Source of data:
Ministry of Economy and Commerce
Ministry of Economy and
Commerce - Policy direction for Energy sector
*
Supporting interconnection projects on gas, oil and electricity
-
An important investment project that is going to be developed in the next period for the
improvement of the transport networks in South-Eastern Europe and for diversification of
the supply sources is Nabucco project - natural gas transport pipeline from Turkey to
Austria on the route Bulgaria-Romania-Hungary. The Project is included in the TEN (Trans
European Network) Programme of the European Union. It represents an important European
project by its role in the security of supply of the Member States
-
Romania supports the Pan European Oil Pipeline (PEOP) Project which offers an alternative
route for oil transport from the Caspian Sea region to the Western Europe countries via
Black Sea. The oil pipeline will make the connection between the oil terminals in the
harbors of Constanta and Trieste, with the possibility of connecting to the TAL
(Transalpine Pipeline) that carries crude oil towards the refineries of Germany and
Austria
-
Regarding interconnections in the electricity sector there are projects with Turkey (a
submarine cable) and all neighboring countries (Ukraine, Hungary, Serbia and Montenegro,
Bulgaria, and Moldova)
*
Supporting the South East European Treaty for Energy Community which should address not
only the existing member countries (Romania, Bulgaria, Serbia and Montenegro, Croatia,
Macedonia, Bosnia and Herzegovina, Albania, region of Kosovo) but also Turkey and Moldova.
Also, a great focus will be put on enlargement of the Bucharest Energy Exchange for the
South East European countries
*
Using domestic resources (an effective and profitable mining, four nuclear units at
Cernavoda, using the potential of our rivers, and especially building the
Tarnita-Lapustesti hydro power plant with pumping accumulation - having the power
variation of +/- 1,000 MW - in order to assure the equilibrium of the energetic system)
*
Regarding renewable energy, energy efficiency and biofuels, even if Romania relies on
hydro energy, there is a legal framework that encourages investments based on green
certificate model in the areas of wind energy, biomass and solar power. There will be
developed national programs for enterprises, local authorities and citizens in order to
reduce the energy costs
Romanian
industry strengths
- A large domestic market, the second largest in Central and Eastern
Europe (after Poland)
- An excellent location at the crossroads of traditional commercial routes. Romania is
ideally located for goods transiting between Caspian Sea, Black Sea and Western Europe
- A skilled, relatively low priced labor force, well trained particularly in technology
and engineering
- A wide range of natural resources, including fertile agricultural land, coal, oil and
gas and a significant tourist potential
- A liberal investment legislation, based on free, non-discriminatory access to markets
and economic sectors
- European Union accession on January 1st, 2007
- Market Economy Status recognized by the US Government (March 2003)
For more information: http://www.minind.ro; http://www.mincom.ro
-
the official web sites of the Ministry of Economy and Commerce
Industrial
production registered a growth per total by 6.5%, in September 2006 as against August
2006, due to the higher manufacturing production by 8.1%.
Regarding the
evolution by broad industrial groups, the production growth per total was determined by
31.6% growth of production in capital goods industry, as well as of the production of road
transport means which increased by 94.5% as against the previous month.
Growths between
10% and 25% were also registered in the following divisions of manufacturing: electric
machinery and appliances (+22.1%), tobacco products (+20,9%), pulp, paper and paper
products (+18.6%), radio, TV and communications equipment and apparatus (+17.5%),
furniture and other industrial activities (+17.5%), leather goods and footwear (+11.7%).
Industrial
production in September 2006 is higher than in September 2005 by 6.7%, this growth being
sufficient to ensure the keeping of the growth rate during 1.I – 30.IX.2006 as
against the same period of the previous year (107.2%).
In the first nine
months of the year 2006, the main resources of primary energy amounted to 31.3
million tons equivalent oil, increasing by 1.7% as against the same period of the previous
year, as a result of domestic production growth by 0.8% and of import by 3.1%. This
period, final consumption of electric energy was by 2.4% higher than in the same
period of 2005 and public lighting and domestic consumption registered increases by 7.1%,
respectively by 6.6%.
In October 2006, as against September 2006, industrial production
registered per total a growth by 3.7% , due to the increase of production in all
industrial sectors: +4.1% in mining and quarrying, + 2.9% in manufacturing and + 17.1% in
electric and thermal energy, gas and water.
As concerns
the evolution by broad industrial groups, the growth of production per total was mainly
due to the increase of production with 8,2% in energy industry, here being pointed out the
production, transport and distribution of electric and thermal energy, gas and water
(+22.0%) and by 5.7% of production in intermediate goods industry.
Growths between
10% and 30% were registered for the following manufacturing divisions:medical, precision,
optical apparatus and instruments, watches and clocks (+27.0%), textile products (+20.7%),
tobacco products (+13.7%) and publishing, printing and reproduction of recorded media
(+10.1%).
In October 2006,
industrial production is higher than in October 2005 by 10.2%, this growth being
sufficient to maintain the growth rate of 1.I – 31.X.2006 period as compared to
the same period of the previous year (107.4%).
In the first ten
months of 2006, main resources of primary energy amounted to 34.7 million tons
equivalent oil, increasing by 2.3% as against the same period of 2005, as a result of
higher domestic production by 0.7% and of import by 4.6%. In the same period, final
consumption of electric energy was by 2.9% higher than in the same period of 2005 and
public lighting and domestic consumption registered growths with 7.3%, respectively 6.3%.
Romanian Industrial Production
Industrial Production Indices
Production of the Main Industrial Products
Electric Energy Resources