Ford Asks For Higher Thermal Power Supply To Romanian Auto Plant Craiova

The thermal power supply required by Ford is similar to the supply for the entire city of Craiova.

The officials of both Ford and Craiova power plant on Friday met to talk about increasing the thermal power supply at the car making plant.

Ion Dinulescu, manager of Craiova thermal plant, pointed out that increasing the thermal power supply entails huge investments in upgrading the entire power network, but Ford already expressed interest in partially financing the upgrade works.

Ford paid EUR57 million last year for a 72.4% stake in the Romanian auto assembly plant.

The European Commission decided in October 2007 to start an investigation into the sale of Automobile Craiova to Ford, based on media information.

The European Union is investigating the privatization, as it suspects an illegal state aid might have been granted by the Romanian government.

Under the European law, EC is compelled to announce the outcome of the investigation in maximum 18 months.

Romania’s privatization watchdog AVAS recently said the authorities in Brussels will present Romania the first conclusions of the investigation in February 2008.

Ford Europe Chief Executive John Fleming said mid-July 2007 that the company plans to increase the output of the Craiova facility to 300,000 units per year, of which 90% will be exported. The company also intends to make 300,000 engines per year at the plant, of which Ford is to export around 70%.

Early July 2007, Ford said in a technical bid that it plans to invest up to EUR675 million to upgrade the plant.

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