Finance minister signs funding deals with Automobile Dacia, DRM Draxlmaier Romania Sisteme Electrice

Finance Minister Alexandru Nazare on Monday handed over two state aid financing agreements to Automobile Dacia SA and DRM Draxlmaier Romania Sisteme Electrice SRL, approved under the state aid scheme established by Government Decision No. 300/2024, aimed at stimulating regional development through major investments.According to a press release from the Ministry of Finance, the investment projects are expected to generate significant social and economic benefits, contributing to job creation and strengthening Romania's trade balance.DRM Draxlmaier Romania Sisteme Electrice SRL, a major global company and one of the largest employers in Romania's automotive sector, will expand its production capacity for electric vehicle wiring systems at its Satu Mare facility. The project, worth 297.2 million lei, with approved state aid of 133.7 million lei, will create more than 400 new jobs by 2030 and contribute 211 million lei to regional development through local and national taxes.The second approved project concerns Automobile Dacia SA, which will receive 37.5 million lei in financing for the modernization of its vehicle painting process ? an 85-million-lei investment. The company's contribution to regional development through taxes and duties is estimated at 18.7 million lei."Major state-supported investments in Romania's strategic sectors strengthen our economy and competitiveness, creating jobs in key industries. Through such partnerships, we support companies that bring added value, foster innovation, and ensure sustainable long-term growth. We plan to announce further strategic measures soon to boost investment and economic development, increasing Romania's attractiveness and creating new opportunities. Romania has enormous potential, which we can achieve with ambition and measures that restore confidence in our country," Minister Alexandru Nazare was quoted as saying.The Ministry of Finance launched the state aid scheme under GD No. 300/2024 to promote regional development by supporting major investment projects. Scheme 33/2024 is primarily aimed at improving Romania's trade balance, either by reducing imports or boosting exports.The scheme targets manufacturing enterprises undertaking initial investments in Romania, with eligible costs ranging from a minimum of 50 million lei to a maximum of 500 million lei. Projects must be completed within three years and use new tangible and intangible assets.The state aid covers part of the costs for: construction of new facilities; acquisition of equipment; acquisition of intangible assets.The scheme has a total budget of nearly 2.25 billion lei (about 450 million euros). Financing agreements can be issued until December 31, 2026, with payments scheduled between 2025 and 2032.Applications must be submitted online during pre-announced sessions. Projects are evaluated and ranked according to a scoring system, with those within the session's budget undergoing detailed assessment.The first application round was held between July 29 and September 9, 2024, with an allocated budget of 1.5 billion lei. A total of 45 applications were submitted, representing investments of around 8 billion lei. To date, 10 financing agreements have been signed, with total investment value of 2.59 billion lei and approved state aid of 1.146 billion lei."These funding initiatives highlight the Ministry of Finance's commitment to supporting Romania's economy and stimulating investments that drive competitiveness and generate long-term employment," the ministry's release stated.