Romania Awards €34 Million in Grants to Two Automotive Firms

Key Takeaways

Two financing agreements worth RON 170 million (EUR 34 million) were signed to support regional development projects by DRM Draxlmaier Romania and Dacia.
The projects are expected to create over 400 jobs and enhance Romania’s economy by improving the trade balance.
The state aid scheme under HG 300/2024 promotes investments between RON 50 million and RON 500 million, with a total budget of RON 2.25 billion.

Financing Agreements for Automotive Sector

On August 25, Finance Minister Alexandru Nazare announced the signing of two significant financing agreements aimed at bolstering Romania’s automotive industry. The combined value of RON 170 million (EUR 34 million) was awarded to DRM Draxlmaier Romania Sisteme Electrice and automobile manufacturer Dacia as part of the government’s initiative under Decision HG 300/2024, designed to stimulate regional development through substantial investments.

DRM Draxlmaier, a leading global automotive supplier and one of Romania’s largest employers, will leverage a RON 297.2 million project to enhance its electric vehicle wiring harness production at its Satu Mare facility. This investment comes with an approved state aid of RON 133.7 million and is projected to add over 400 new jobs by 2030. Additionally, it is expected to bolster the region’s fiscal contribution with about RON 211 million in taxes and duties.

The second project awarded to Automobile Dacia involves RON 37.5 million allocated for modernizing the vehicle painting process and an additional RON 85 million for further enhancements. The government anticipates that Dacia’s contributions to regional development will reach RON 18.7 million in taxes and duties.

The state aid scheme under HG 300/2024 aims to uplift Romania’s regional economies by facilitating significant investments focused on manufacturing enterprises. Eligible projects must have a minimum investment of RON 50 million and a maximum of RON 500 million. It is mandated that these investments utilize new tangible and intangible assets and be finalized within three years.

The overall budget for this scheme stands at approximately RON 2.25 billion (around EUR 450 million), with financing agreements possible until December 31, 2026. The aid payments will span from 2025 to 2032. Currently, 10 financing agreements have been formalized, committing RON 2.59 billion in total investments, with an approved aid amounting to RON 1.146 billion.

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