OMV Petrom, Ford Romania sign MoU for strategic partnership

OMV Petrom, Ford Romania sign MoU for strategic partnership OMV Petrom, Ford Romania sign strategic partnership

BUCHAREST (Romania), October 16 (SeeNews) - Ford Romania, a subsidiary of US car maker Ford Motor Company, and oil and gas group OMV Petrom [BSE: SNP] said on Monday they signed a memorandum of understanding (MoU) for the development of strategic partnership.

The first steps in the partnership between OMV Petrom and Ford Romania concern the supply of Petrom fuels, produced in Romania, for the new Ford EcoSport units, a model for which official production started on October 12 at Ford’s plant in Craiova, in southern Romania, the two companies said in a joint press release.

Following the execution of this memorandum, a Petrom fuel station will operate on the premises of the Craiova factory, destined for the production line, the companies added.

"Through strategic partnerships such as the one with Ford Romania, we have direct contact with the automotive industry which is the most relevant for us, as fuel producers," OMV Petrom's CEO Mariana Gheorghe said.

The cooperation also envisages an analysis on the mobility needs of young families in Romania, through a dedicated market study and the  development of professional education in Romania.

"Partnering with OMV Petrom is one of the strategic steps we took considering Ford’s continuous development in Craiova and in the region. At the same time, we very much value all the potential our teams have and the great things we can do together for all Romanians," Ford Romania president John Oldham said.

As announced in March 2016, the investment in the EcoSport assembly line adds up to 200 million euro ($236 million). The EcoSport SUVs produced in Craiova will be sold in Europe, except Russia.

Ford entered Romania in March 2008 when it wrapped up the acquisition of a 72.4% stake in Automobile Craiova, the sole owner of car maker and distributor Daewoo Automobile Romania. In 2012, the factory in Craiova launched production of the B-Max model, which it sold only on the European market. Ford ended production of the B-Max model in Craiova in September to support EcoSport manufacturing at the same factory.

Ford also produces EcoBoost 1.0 litre- and 1.5 litre-engines in Craiova.

OMV Petrom is the largest integrated oil group in Southeastern Europe with an annual oil and gas production of approximately 64 million bep in 2016. The group has a refining capacity of 4.5 million tonnes a year and operates an 860 MW high efficiency power plant. On the oil products distribution market, OMV Petrom was present on the Romanian and neighbouring markets through 785 gas stations, at the end of March 2017, under two brands, OMV and Petrom.

OMV, one of the largest listed industrial companies in Austria, holds 51.01% of the shares of OMV Petrom. The Romanian State, through the energy ministry, owns 20.64% of its shares, Fondul Proprietatea owns 9.9985% and 18.35% is freely traded on the Bucharest Stock Exchange BVB and on the London Stock Exchange.

OMV Petrom's shares were trading 0.17% higher at 0.29 lei at 1203 CET on the BVB, on Monday.

($=0.8455 euro)

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