Reindustrialization is essential for Romania’s development

With an emerging economy struggling to overcome the impact of the economic crisis, Romania must focus all the efforts on its reindustrialization in order to be able to eventually align with other EU economies. Reindustrialization is thereby a second chance, an essential step for Romania’s economy to grow after 20 years of neglecting the development potential this sector has. That’s the common view and conclusion, at the same time, of Varujan Vosganian (former Minister of Economy) and Ionel Blanculescu (Advisor to Romania’s Prime Minister), among others, present at ‘RE: Build the future through RE: Industrialization’, a conference organized by Aversa Manufacturing.

‘Reindustrialization is the second chance for our country and we see that step by step, we move from debates to facts’, Blanculescu said. Sharing his opinion, Vosganian further stressed out that the effectiveness of a reindustrialization strategy depends on factors such as regional development - which currently reflects high discrepancies across Romania-, competitiveness, or exports.

On the other hand, as the industry is already a major component of Romania’s economy, amounting to 24% of the GDP – the highest percentage among EU countries, it is rather needed to consider a revival of the industry than a reindustrialization, according to Adrian Ciocanea, Secretary at the Ministry of Economy. In this respect, there’s a strong need of establishing an effective collaboration between the ministry and the investors, there’s need of a joint effort in order to achieve the desired results – an industry to support a major economic growth.

The Ministry of Economy, in its turn, has already met with some 500 representatives of the industry field in view of the industrialization strategy, Ciocanea said, the event organized by Aversa Manufacturing being another step, meant to give a hand to representatives of local business environment by putting them face to face with decision makers in the political environment.

‘We initiated such a debate because we are in the position of talking about Aversa as an example of success. We want to share from our experience, we can openly talk about the challenges we face and we wish to find real solutions to encourage investors in connection with the reindustrialization and the infrastructure in Romania. ’, Michael Topolinski, President of Aversa Manufacturing said. He also pointed out that as long as there is initiative and interest, reindustrialization can be carried out in Romania.

The company is a positive example of how Romania’s economy could be revived, provided the industry was given a chance – although a restraint case, Aversa Manufacturing, which is Romania’s single centrifugal pumps manufacturer, boosted its production in just three months after being privatized. As until September 2013, the company had been insolvent for seven years its current success could be a signal for other investors interested in this sector that could be Romania’s economic engine.