Romanian cosmetics maker Farmec will invest over 40 million euro ($44.2 million) in a new production facility in the Apahida commune, in the northwestern county of Cluj, to which it will relocate most of its manufacturing operations, according to SeeNews.com.
The investment will double Farmec’s production capacity and create about 100 new jobs, the company said in a press release.
At present, most of Farmec’s production activities are concentrated near the central area of the Cluj-Napoca city, but some products, including its range of deodorants, are manufactured in Dezmir, Apahida commune. Following the relocation of its entire production to Dezmir, the existing Cluj-Napoca site will function as an office building.
Of the 40 million euro investment, 24 million euro will be used to finance the construction of a 17,700 sq m production centre across a total area of 24,400 sq m, while 16 million euro will go towards acquiring equipment.
To secure partial financing for the new factory, Farmec has started a procedure for obtaining state aid, it said.
“Considering the significant negative trade balance in the cosmetics sector, caused by massive imports, as well as the added value that Farmec brings to Romania’s economy and its country brand, we are confident that we will have the support of the authorities in our endeavour to support durable economic growth,” said Mircea Turdean, CEO of Farmec.
The construction of the production facility is planned to begin next year and is expected to be completed within three years.
The factory will also feature photovoltaic panels, heat pumps and other equipment promoting low energy consumption, as well as modern wastewater and industrial water collection and treatment systems.
Farmec sells its products in approximately 30 countries and as of April 2023, the network of stores owned by the brand included eight Farmec stores in six Romanian cities and twenty Gerovital stores across twelve cities.
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