Romanian minister for Business Environment, Commerce and Entrepreneurship, Ştefan-Radu Oprea, has stated that among the reasons Nestle has announced it will shut down the factory in Romania are the dramatic fall of the sales and of the market share, as well as the fact that the company is becoming more profit-guided.
„I think they had a domestic issue caused by the dramatic decline of the sales and of the market share. I suppose this is one of the reasons that made them take this decision,” minister Oprea told a press conference on Wednesday.
The Swiss giant Nestle, one of the biggest players on the local consumer goods market, announced five days ago that it will close down its only factory in Timisoara, western Romania, where it produces the Joe wafers (Romanian brand).
„If we are to go deeper we could think that things have dramatically changed when it comes to the behaviour of the multinational companies, at the end of the 80s when the profit started to be reported on a quarterly basis, instead of an annual basis. Therefore, the need to report the profit is a constant need in the life of most large companies. So, if you look carefully in their press release, you’ll see there is indeed a shareholder within the Nestle group who wants to be more and more profit-oriented,” the minister added.
The Commerce minister underlined that the Nestle’s withdrawal from Romania can also reveal what effects can the lack of workforce create.
“The lessons we can learn from that, as a ministry, is that, indeed the scarce manpower can become a barrier in attracting foreign investments in Romania today. There are some areas in the country where the unemployment is almost close to zero, at least for certain professional categories, such as in Timisoara,” Opreaa argued.