Romanian President Says Privatization Auth Was Wrong To Shut Down Tractor Maker

The president said shutting down tractor production was unfair, adding needs about 700,000 tractors. He also said a government program helping farmers buy tractors, similar to the “First Home” program allowing people to buy homes with state-guaranteed loans, would help the country’s agriculture sector.

Basescu on Friday visited truck maker Roman SA Brasov (ROVA.RO), in central Romania, which also makes buses, utility vehicles and tractors.

Romania’s former sole tractor maker, Tractorul Brasov, was closed down in April 2007, when some 1,800 employees out of total 1,900 were laid off. In July 2007, Flavus Investitii won a public bid to take over Tractorul’s industrial platform, for EUR77 million. Flavus Investitii said will invest some EUR800 million in an industrial park and a real estate project on the plant’s platform.

The president was shown 25 tractors made at Roman Brasov, due for export to Egypt.

Egyptian firm Crystal, operating on Roman Brasov’s platform, finished the first lot of 25 tractors out of an order for 600 such vehicles. The company plans to make 100 tractors per month and wants to reach 3,000 tractors per year.