European Commission OKs Romanian Tractor Mkr Sale

In September 2007, the European Commission initiated an investigation on the possible violation of the European Union treaty regarding potential state aid granted by the Romanian state when it sold the Brasov factory assets, in summer 2007, to the company Flavus Investitii.

Tractorul  was shut down in April 2007, with the layoff of 1,800 employees from the total number of over 1,900 employees.

In July, investment company Flavius Investitii won the auction for the takeover of the industrial platform for EUR77 million.

Flavus management announced, early March 2008, that an industrial park and a real estate project will be developed on the platform of the former factory, investments worth some EUR800 million, and that the production of tractors depends on finding a strategic partner before summer 2008. Management said the company cannot make tractors in the factory because of the obsolete equipment.