Aeronautics supplier Premium Aerotec, part of the German EADS group, plans to rent 10 hectares of land in Ghimbav, Brasov county, from state-owned Romanian airplane maker IAR Ghimbav, in order to expand production of components for Airbus planes, according to local daily Zf.ro.

Meanwhile however, EADS is to cut 5,800 jobs at its defence businesses and close sites in Paris, Munich, Spain and Britain, in an attempt to up profits on the back of a steep decline in Europoean defense spending. The cuts will be made during the next three years, and cover around 4 percent of the company's workforce.

Premium Aerotec inaugurated its plant in Brasov, Romania, in July 2011, after total investments of EUR 40 million. Production started in December 2010 on completion of the first construction phase. The company has over 550 employees in Brasov.

Romanian airplane manufacturer IAR Ghimbav recorded a turnover of just EUR 3.3 million in the first nine months of 2013, down from some EUR 55 million in 2008.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Premium Aerotec)