The American cars producer Ford has planned EUR 130 million in additional investments at the Craiova plant, where it will produce a new car model, and the Public Finance Ministry (MFP) will extend the production period target until 2025, according to a release of the Ministry.
„The Public Finance Ministry proposes a new change in legislation through which a state aid of EUR 75 million was given to the Ford Romania company for the implementation and finalization of the investments projects in the cars and engines plant from Craiova, valued at EUR 869 million. This consists in a prolonged period of production until December 31 2025,” says the MFP.
The condition is that Ford make at Craiova an additional investment of at least EUR 130 million until 2019, from its own resources only, without state aid. Out of this amount, EUR 100 million will be used for the production start of a new car model at Craiova and EUR 30 million for the production of engines.
If Ford doesn’t meet the terms of the deal in this period, a new recovery mechanism of the state aid will be determined, which will be paid by Ford proportionally with the non-fulfillment level.
„The Romanian state will only monitor the investment maintenance and the fulfillment of the conditions associated with this until December 31 2017, including Ford meeting the production target of 810,00 cars and 1.5 million engines.”