Lufkin Industries purchases 33-ha plot in Ploiesti West Park for new plant

SC Allianso Business Park SRL, the Romanian subsidiary of Alinso Group, has sold Lufkin Industries a 33-ha plot in Ploiesti West Park. The Texas-based oil company plans to build a USD 126 million manufacturing facility which will employ 300 people by 2012.

“The new operation in Romania is a critical step in our strategy to expand our geographical reach to better serve our global customers. This will enhance our competitive position in the growing markets of the Eastern Hemisphere. Using Lufkin’s proven regional manufacturing strategy, the Romanian operation will be a strategic hub to serve the European market as well as acting as the focus for exports to Russia, Central Asia, North Africa, the Middle East and markets in East Asia,” said Jay Glick, CEO and president of Lufkin Industries. He added that Romania offers the company an advantageous location as it is becoming a regional energy hub. Glick cited advantages such as the political stability provided by EU membership, the strategic benefit of significant local oil resources, access to local sources of raw material and castings, a strategic location for shipping routes and a technically-capable and highly-educated local workforce.

Ploiesti has a lower average distribution cost than Bucharest (by around 12 percent).

Allianso Business Park SRL already delivered a 30,000-sqm warehouse to Unilever in April.

A new 20,000-sqm logistics building will be available by the end of September this year, according to company representatives. Allianso also plans to build an SME building complex on the Ploiesti West Park site.

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Law firm Salans has advised Lufkin Industries Inc. on state aid incentives worth EUR 28.1 million involved in the transaction. Salans’ team of advisors included Nicoleta Mihalache, Cosmin Bonea and Amalia Lincaru.

Earlier this year the law firm has also advised Lufkin on acquiring the plot for the plant. The real estate team was made up of Laura Tiuca, managing counsel and co-head of Salans Bucharest’s real estate

team, associate Raluca Radu and counsel Stewart Middleman, and was overseen by Christopher Berlew.