|
ELECTRICAL POWER SYSTEMS
ITA Industry Code: ELP
Over the next ten years, total investment in the sector is
expected to amount to $12-15 billion. Investments would mainly
target the completion of the second unit of Cernavoda nuclear
plant (about $750 million), the completion of hydropower plants,
and the rehabilitation of thermal power plants. The contract
for the completion of the second unit of Cernavoda nuclear
power plant (a 700 MW reactor based on Canadian Candu technology)
has been signed. Work will be carried out by Atomic Energy
of Canada and the Italian firm Ansaldo. Hydropower plants
where construction works have reached a completion ratio of
at least 70% will be a priority over 2001-2002. The other
plants (with completion levels of 20-50%) will be either privatized,
or included in joint-stock companies with private partners.
Transelectrica, the electricity transmission and dispatching
company, has received loans from EBRD, EIB, and EC-PHARE for
a project designed to improve the reliability of the power
transmission and communications systems and to provide the
necessary metering facilities to support the development of
a competitive power market. The project (estimated cost: $231
million) will require the procurement of the following goods
and services: rehabilitation and installation of optical fiber;
upgrading of telecommunications terminal equipment; supply
and installation of OffGrid communication links with major
power stations; supply and installation of the metering system
for the wholesale electricity market, including Current-Transformer,
Voltage-Transformer, and Remote-Terminal-Unit facilities;
hardware and software for the market operator; and consulting.
Data Table
 |
1999
|
2000
|
2001
|
|
|
(USD
Millions)
|
|
| A)
Total Market Size |
282
|
315
|
375
|
| B)
Total Local Production |
100
|
120
|
150
|
| C)
Total Exports |
18
|
25
|
25
|
| D)
Total Imports |
200
|
220
|
250
|
| E)
Imports from the U.S. |
20
|
50
|
100
|
Note: The above statistics are unofficial estimates.
RAILROAD EQUIPMENT
ITA Industry Code: RRE
The Romanian railroad network consists of 22,000 km. of lines,
of which half are core and half are lighter density secondary
lines. The National Railroad Company (SNCFR) is in the middle
of a restructuring and modernization program that benefits from
substantial loans granted by EBRD, EIB, the Japanese Bank for
International Cooperation (JBIC), and the World Bank. This massive
funding will assist with the integration of the pan-European
corridors IV and IX into the European railroad network. While
World Bank loans are predominantly programmed for track rehabilitation,
track measurement equipment, and software and telecommunications
systems to improve operations, JBIC will grant $100 million
to a project aimed at upgrading 65 Diesel engines belonging
to SNCFR, over the next three years. This contract is closely
related to the privatization of Electroputere, the largest producer
of railway and urban vehicles on the Romanian market. To date,
Electroputere has produced about 3,800 locomotives (diesel and
electric), from which 40% were exported to such countries as
Poland, Bulgaria, former Yugoslavia and China. Electroputere's
privatization process is due to be completed in the second half
of 2001. The buyer of Electroputere is likely to win the $100
million JBIC- funded contract and be locked-in for years to
come for business in Romania and the region.
SNCFR's modernization programs offer attractive trade and investment
opportunities for U.S. suppliers of railroad equipment. There
is a growing presence of U.S. firms in the Romanian railroad
sector. General Electric has offices in Romania and the Electro-Motive
Division of General Motors recently rehabilitated two 2100 HP
diesel locomotives with their Romanian builder, Electroputere.
Trinity Industries purchased former railroad workshop facilities
and turned them into freight car rebuilding/overhaul shops.
They also purchased a separate workshop to build new cars. Greenbrier
has also expressed an interest in manufacturing railroad cars
in Romania. Timken is in Romania in the freight car roller bearing
business. At least one U.S. architectural-engineering firm,
Louis Berger International, has been doing construction management
work for the railways for some time. The Seneca Group has been
working with SNCFR on restructuring and on equipment feasibility
assessment.
Data Table
|
1999
|
2000
|
2001
|
|
|
(USD
Millions)
|
|
| A)
Total Market Size |
278
|
320
|
395
|
| B)
Total Local Production |
100
|
120
|
165
|
| C)
Total Exports |
12
|
20
|
25
|
| D)
Total Imports |
190
|
220
|
250
|
| E)
Imports from the U.S. |
10
|
30
|
80
|
Note: The above statistics are unofficial estimates.
TELECOMMUNICATIONS EQUIPMENT
ITA Industry Code: TEL
During 2001-2002, the Romanian telecommunications equipment
sector is expected to continue its dynamic growth. Major procurements
will be related to the implementation of the following projects,
for which the Ministry of Communications and IT will launch
tenders in the second half of 2001:
Expansion of the SDH network of the National Radio-communications
Company (NRC); Modernization of NRC's network infrastructure
for "Romania 1" TV channel ;
Development of NRC's wireless point-multipoint network in the
26GHz band;
NRC's SDH node connections for ATM network support;
Modernization of NRC's long and medium-wave transmitters network;
Modernization of NRC's short-wave transmitters network;
Developing and modernizing the infrastructure of the "TVR 2"
channel;
Developing and modernizing the FM-CCIR transmitter network (87.5-108
MHz).
In spite of heavy competition from Western European firms, U.S.
companies stand good chances of concluding important deals related
to these projects.
In the fall of 2001, the government will launch tenders for
two national licenses for wired telephony and four national
licenses for 3G telecommunications. The building of these six
national telecommunications networks, which will take several
years to complete, will generate transactions amounting to billions
of dollars.
Data Table
|
1999
|
2000
|
2001
|
|
|
(USD
Millions)
|
|
| A)
Total Market Size |
1,000
|
1,050
|
1,200
|
| B)
Total Local Production |
360
|
194
|
210
|
| C)
Total Exports |
0
|
0
|
0
|
| D)
Total Imports |
640
|
856
|
990
|
| E)
Imports from the U.S. |
60
|
55
|
75
|
Note: The above statistics are unofficial estimates.
COMPUTER HARDWARE
ITA Industry Code: CPT
Imports cover about 55 percent of the Romanian computer hardware
market, and come mainly from such traditional U.S. suppliers
as IBM, Compaq, Hewlett-Packard, and Cisco. One of the most
important customers of companies in this sector is the Romanian
government, which is implementing some of the largest IT programs
in the country (integrated system for tax collection, integrated
system for the National House of Health Insurance, etc.) Projections
for 2001-2003 estimate that the market will grow by an average
of 12 percent annually. Recent initiatives of the Romanian government
may, however, stimulate a faster growth, especially in the field
of personal computers. The launching, by end-2001, of a $200
million project for supplying more than a thousand schools and
high schools with IT laboratories permitting access to Internet
will generate a surge in the PC market. Major U.S. computer
hardware firms in Romania are prepared to play an active role
in helping the government implement this project.
Best prospects include: PC6x86, PC5x86, PCPentium II-333MHz,
network interfaces and other communication interfaces, as well
as multimedia equipment.
Data Table
|
1999
|
2000
|
2001
|
|
|
(USD
Millions)
|
|
| A)
Total Market Size |
210
|
205
|
215
|
| B)
Total Local Production |
120
|
115
|
115
|
| C)
Total Exports |
25
|
20
|
20
|
| D)
Total Imports |
115
|
110
|
120
|
| E)
Imports from the U.S. |
90
|
85
|
100
|
Note: The above statistics are unofficial estimates.
COMPUTER SOFTWARE
ITA Industry Code: CSF
This sector's growth potential over the next three years (about
15 percent annually) will definitely favor U.S. exports. About
75 percent of all foreign software products in Romania are American.
Microsoft and Oracle lead the import market, being followed
by SAP (Germany), Scala (Sweden), Informix (U.S.), Baan (The
Netherlands), and several Japanese companies. A significant
amount of software is produced in Romania by local branches
of foreign companies. In most cases, such software products
are totally or partially exported.
The software import market is expected to grow significantly
in conjunction with the implementation of some large Government-supported
IT projects to be completed in the near term (e.g. computerization
of the public administration of 2,800 localities, computerization
of Romania's General Cadastre, integrated system for collection
of taxes on global income, integrated information system for
the National House of Health Insurance, rehabilitation and restructuring
projects in the areas of transportation and energy, etc.) A
number of other projects, which have been recently approved
by the government, will contribute importantly to an upsurge
in the market. Some of the most significant projects in this
group are:
Implementation of a National Network of computerized services;
Implementation of e-Market
Development of the "Romanian Gateway" Portal
Implementation of WEB Videoconferencing
Development of Info-Kiosks for citizens
Development of the e-Referendum program
Implementing e-Public Procurement
Creation of a Cyber Center
Development of a management information system for public administration.
Data Table
|
1999
|
2000
|
2001
|
|
|
(USD
Millions)
|
|
| A)
Total Market Size |
90
|
85
|
95
|
| B)
Total Local Production |
25
|
25
|
35
|
| C)
Total Exports |
20
|
23
|
30
|
| D)
Total Imports |
85
|
83
|
90
|
| E)
Imports from the U.S. |
64
|
62
|
70
|
Note: The above statistics are unofficial estimates.
AIRCRAFT AND PARTS
ITA industry code: AIR
Romanian demand for aircraft and parts is expected to witness
a moderate but constant increase over the next years, with the
aggregate market size for 2001-2003 reaching an estimated value
of $300 million. The market will be dominated by purchases made
by the national carrier, Tarom. Major procurement will include
four B-737-700/800's and, possibly, one or two short-haul aircraft
for use on domestic and regional lines. Purchases to be made
by smaller air carriers and by general aviation companies (small
jet planes, micro-light aircraft, and helicopters) will also
contribute to this market's upsurge. In addition, the country's
four aircraft factories and all of the auxiliary facilities
producing for the aerospace industry routinely import aircraft
parts and supplies for their manufacturing programs.
Data Table
|
1999
|
2000
|
2001
|
|
|
(USD
Millions)
|
|
| A)
Total Market Size |
85
|
90
|
100
|
| B)
Total Local Production |
30
|
25
|
30
|
| C)
Total Exports |
5
|
5
|
5
|
| D)
Total Imports |
60
|
70
|
75
|
| E)
Imports from the U.S. |
2.1
|
33.2
|
40
|
Note: The above statistics are unofficial estimates, except
for the 1999 and 2000 figures on imports from the U.S., which
come from official U.S. Department of Commerce statistics.
MEDICAL EQUIPMENT
ITA Industry Code: MED
The Romanian import market for medical equipment is dominated
by German, Austrian, and Italian companies. U.S. companies with
a more significant share of the market include: General Electric,
Hewlett Packard, Beckman Coulter, Picker, Stryker, ATL, Varian,
Alcon, Coherent, Perkin Elmer, Medronic, Abbot, Becton Dickinson,
Helena Laboratoris, and Biogenis. To counter Western European
competition, U.S. companies should consider establishing joint
ventures and making direct investment, particularly by the acquisition
of hospitals, health centers, clinics, or medical equipment
factories which are slated for privatization.
Data Table
|
1999
|
2000
|
2001
|
|
|
(USD
Millions)
|
|
| A)
Total Market Size |
85
|
95
|
110
|
| B)
Total Local Production |
10
|
10
|
10
|
| C)
Total Exports |
0
|
0
|
0
|
| D)
Total Imports |
75
|
85
|
100
|
| E)
Imports from the U.S. |
9.7
|
26.5
|
30
|
Note: The above statistics are unofficial estimates, except
for the 1999 and 2000 figures on imports from the U.S., which
are official U.S. Department of Commerce statistics.
Best Prospects for Agricultural Products
MEAT
Romania's domestic meat production is insufficient to meet total
consumption. In 1999, Romanian imports of U.S. poultry and beef
variety meats reached $4.0 million. For 2000, total U.S. poultry
and meat exports are expected to drop to about $3 million because
of non-tariff barriers introduced by the Romanian Government.
The main competitors are Canada, EU, and CEFTA countries.
Data Table
|
1999
|
2000
|
|
|
(USD
Millions)
|
| A)
Total Market Size |
95
|
85
|
| B)
Total Local Production |
75
|
65
|
| C)
Total Exports |
5
|
3
|
| D)
Total Imports |
30
|
20
|
| E)
Imports from the U.S. |
4
|
3
|
Note: The above statistics are unofficial estimates, except
for the 1999 and 2000 figures on imports from the U.S., which
are official USDA data.
Source:
US Dept. of Commerce
Demographics & Economic Situation
Source:
Factbook.net
|
Country Reports & Market Analyses
