Swedish packaging company transfers production lines to Romania
{{date|April 29, 2005}}<br>

[[w:Sweden|Swedish]] company Korsnas Packaging has extended its operations in [[w:Romania|Romania]] by transferring two production lines from [[w:Germany|Germany]] and the [[w:United Kingdom|United Kingdom]] to its Romanian subsidiary in [[w:Ploiesti|Ploieşti]], an industrial city close to [[w:Bucharest|Bucharest]]. The first production line will be designed for producing packing material for food and the building industry. This line will be transferred to Romania at the beginning of May, with the transaction being worth [[w:euro|€]]1.5 million. The second production line will be transferred in 2006, depending on the 2005 financial results of Korsnas' Romanian subsidiary.

In the past few years, and the past year especially, more European Union companies have relocated to Romania for to its lower labour cost and skilled workforce. Foreign investors have also been attracted by a new tax policy which started in January 2005, putting in place a flat 16% tax rate for personal income and corporate profit. Foreign investment is expected to increase in the future, as Romania signed in April 25 its Accession Treaty with the [[w:European Union|European Union]] and is set to become a member of this organisation on January 1, 2007.

== Related news ==

* [[Bulgarian and Romanian EU accession treaty is signed in Luxembourg]]
* [[EU accession treaty for Romania published on the Internet]]
* [[European Commission approves the accession of Bulgaria and Romania]]

==References==

* {{source|url=http://www.daily-news.ro/article_detail.php?idarticle=10026
|pub=Bucharest Daily News
|title=Korsnas relocates production to Ploiesti
|author=Mihai Istrate
|date=April 28, 2005}}

   
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[[Category:Romania]]
[[Category:Sweden]]
[[Category:Europe]]
[[Category:Economy and business]]
[[Category:European Union]]
Swedish company Korsnas Packaging has extended its operations in Romania by transferring two production lines from Germany and the United Kingdom to its Romanian subsidiary in Ploieşti, an industrial city close to Bucharest. The first production line will be designed for producing packing material for food and the building industry. This line will be transferred to Romania at the beginning of May, with the transaction being worth €1.5 million. The second production line will be transferred in 2006, depending on the 2005 financial results of Korsnas' Romanian subsidiary.

In the past few years, and the past year especially, more European Union companies have relocated to Romania for to its lower labour cost and skilled workforce. Foreign investors have also been attracted by a new tax policy which started in January 2005, putting in place a flat 16% tax rate for personal income and corporate profit. Foreign investment is expected to increase in the future, as Romania signed in April 25 its Accession Treaty with the European Union and is set to become a member of this organisation on January 1, 2007.
Romania Sweden Europe Economy and business European Union