Romania, Bulgaria Engaged In Tough Race For EUR7B Austrian Investment

Romania stands higher chances than Bulgaria to attract the EUR7 billion-investment that Austria's steel-maker Voelstahlpine plans to make in the Black Sea region.

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Imaginea articolului Romania, Bulgaria Engaged In Tough Race For EUR7B Austrian Investment

Romania Advantaged In Race With Bulgaria For EUR7B Austrian Investment

Voestalpine mulls building a huge steel plant and is yet to decide on a country to this end, with Ukraine and Turkey also joining the race.

Novinite.com quoted the Austrian newspaper Der Standart as saying that the competition is between Romania and Bulgaria.

According to Der Standart, Bulgaria is trying to attract the investor by offering cheap electricity, whereas Romania is strongly counting on its infrastructure and its fast-growing auto industry, which needs steel products.

Der Standart quoted high officials from Bucharest, who said the authorities in Sofia are striving to get the steel investment at any rate, while people close to the Voelstahlpine management consider Bulgarians as "the most aggressive" in the competition.

However, Voelstahlpine spokesperson said electricity is not as important for the Austrian company as the logistics, infrastructure, and raw material supplies.

Voestalpine announced in October 2007 that it would start construction works on a service center in Romania’s southern city of Giurgiu in 2008, which will be used to process metal sheet and other materials for the Voestalpine clients, stressing the investment will rise to EUR18 million.

Voelstahlpine is expected to choose the location for its investment in the summer.

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