Honeywell inaugurates officially its plant in Ploiesti

Despite being operational since November 2012, Honeywell made yesterday the official inauguration of its friction materials plant in Ploiesti. According to the company's leadership team, the decision is based on the fact that they wanted to organize the ceremony in order to present a fully functional plant at a moment when there have already been produced over 2 million brake pads.

The investment of EUR57 million is yet to be completed, but it is expected to be finalized by 2015 when there will be a greater production capacity – Honeywell aims to reach 10 million brake pads a year. Romania's Government also supports the American company's investment through a EUR16 million governmental grant that is allocated provided there's a proof a constant improvement and there are no invoices due. 

'The total investment into the Ploiesti plant is around EUR57 million and this investment go ahead to 2015. We have received a grant from the Romanian Government, the total value of that is around EUR16 million, but we have not received that money yet, only a part, because the grant depends on the investment, that we have paid the bills and that the machines are up and running and today the investment is not completed, but full investment will be by end 2015 and by that time we expect to receive EUR16 million out of EUR57 million investment.'explained Rainer Bostel, President of Friction Materials Division at Honeywell.

The ceremony was also meant to re-confirm the commitment Honeywell made with Romania where has been operating for 15 years and runs three plants: one in Bucharest, another in Lugoj and the newest, in Ploiesti.

'This plant in Ploiesti that is equipped with high technology represents the most recent proof of Honeywell's commitment towards developing the friction materials unit and also, towards Romania, being a new example of high investment and great quality throughout the country.'said Terrence Hahn, President and CEO of Honeywell Transportation systems.

Considering the foreign direct investments in Romania are on a worrying decreasing path, the commitment Honeywell made might be considered a positive signal to other investors. Romania's Prime Minister Victor Ponta who also attended the ceremony reinforced his support towards investments and assured possible investors that Romania is a proper business environment: 'I took this chance to announce that Romania plans to keep a credibility and stability of economic and fiscal conditions and also, the changes that we've made and that we are going to make are meant to encourage investments especially in research and innovation.'