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Romania to back Dacia, Omnia Europe, three car parts makers with 358.6 mln lei (77 mln euro)

Romania to back Dacia, Omnia Europe, three car parts makers with 358.6 mln lei (77 mln euro) Romania's finance ministry

BUCHAREST (Romania), December 10 (SeeNews) - Romania's finance ministry said on Monday it has approved 358.6 million lei ($88 million/77 million euro) in state aid for five investment projects.

The five projects are worth a total 1 billion lei, excluding the state financial aid, the ministry said in a statement.

The biggest sum, of 115.8 million lei, will go to Romanian car maker Automobile Dacia, a unit of France's Renault, to increase production in order to meet higher demand.

Next, Sogefi Suspensions Eastern Europe will receive 104 million lei to set up a factory for the production of components for auto suspension systems.

A further 80.5 million lei will be provided to Omnia Europe for a greenfield investment for the production of starch, maltodextrin, gluten, fodder gluten and maize germs.

Martur Automotive Seating and Interiors will receive 41.3 million lei to expand capacity in order to manufacture car seat components and full assembled car seats.

Finally, Swoboda Sibiu will receive 17 million lei  to extend its sensors production capacity for the automotive industry.

The approved projects will create 1,272 new jobs and will contribute 418.1 million lei to regional development through taxes, the finance ministry said.

The finance ministry has increased the state aid scheme by over 1 billion lei in a second budget rectification this year to a total 1.6 billion lei, for 14 projects, including the five approved on Monday.

"The 14 approved agreements this year are a clear proof of the Romanian government's support for investments with a major impact on the economy. These large-scale projects will generate over 3,200 jobs and bring some 933 million lei to the state budget. I wish them all success in implementing and finalizing projects," finance mnister Eugen Teodorovici said.

The finance ministry launched the scheme in November 2014. To qualify for state aid, a company must be ready to invest at least 10 million euro ($11.4 million), VAT excluded.

(1 euro =4.6495 Romanian lei)