American car manufacturer Ford has assumed to conduct additional investments of EUR 130 million in the factory in Craiova, where it will produce a new model of vehicle, whereas the Ministry of Finance (MF) will extend until 2025 the period for implementing the production commitments, the ministry said in a statement on Friday.
“The Ministry of Finance proposes a new amendment to Government Emergency Ordinance no. 109/2008, the legal framework which provided state aid of EUR 75 million to Ford Romania SA for the implementation and completion of investment projects in the automobile factory and factory engines in Craiova totalling EUR 869 million. The amendment extends until December 31, 2025 the period to reach the level of production of cars and engines,” reads the release, quoted by Agerpres.
The condition is that by the end of 2019, Ford Craiova conducts, exclusively from its own resources and without the involvement of other elements of state aid, an additional investment of EUR 130 million. Of this amount, EUR 100 million will be used to introduce the production of a new car model in Craiova and EUR 30 million for engines production.
If the proposal to extend the period to reach the production level is not met, Ford is not obliged to maintain the investment in Craiova after December 31, 2017, the ministry says.
The Ministry of Finance will monitor the completion of the obligation undertaken by Ford to realize additional investments of EUR 130 million and the obligation to reach by 2025 a production level of 810,000 vehicles and 1.5 million engines in Craiova plant.