Romania Becoming Interesting Distribution Market

Romania and Eastern Europe in general are now commonly seen as attractive “manufacturing”, but how are they seen in terms of sales and distribution? Burlacot, marketing manager with the truck tyre unit of Michelin Europe, told Romanian newspapers that consumption within these markets is growing 10 – 15 per cent each year.

Michelin currently owns two plants in Romania – Silvania Zalau and Victoria Floresti, which it acquired in 2001, as well as other assets, from Tofan group, and a metallic cord plant built following a greenfield investment in Zalau. At present, exports to the United States and other European countries account for roughly 75 per cent in Michelin’s business in Romania.

“The countries we currently have production centres in, such as Romania, are becoming increasingly attractive as outlets, too. These are expected to rebound in the near future,” said Alexis Burlacot. “It’s worth noting [transport companies] operating in Eastern Europe are becoming increasingly specialised and professional, with a direct impact over our businesses.”