Romania's largest cosmetics manufacturer Farmec announced plans to build a new factory in the commune of Apahida, Cluj county, and relocate its entire production there. The company estimates the total investment at over EUR 40 million, aiming to also access individual state aid for the project.

Currently, most of Farmec's production is concentrated near the central area of Cluj-Napoca, but some of the products, including the range of deodorants, are manufactured in Dezmir, Apahida commune. The company wants to relocate the entire production in Dezmir and keep the unit in Cluj-Napoca as an administrative building.

The investment is estimated at more than EUR 40 million, of which over EUR 24 million for the construction from scratch of a production center with a built area of 17,700 square meters and a total unfolded area of 24,400 square meters. Another EUR 16 million are to be allocated to equipment.

Construction of the new facility is expected to begin next year and be completed within three years. The investment is estimated to increase production capacity by up to 100% and create around 100 new jobs.

The main production facility will consist of several production and storage areas, cleaning products, plastics and cosmetics departments, as well as research laboratories or technical annexes. The investment also includes an office building and two other buildings for the strippers and varnishes section and the descaling section.

"The phased relocation of production in the coming years to Apahida is a historic decision for Farmec, and, with it, we expect a positive evolution of financial results," said general manager Mircea Turdean.

The new facility will be based on state-of-the-art technology with a high degree of automation of the production flow, which will make the production process more efficient and cut costs, the company said. Solar panels will also be installed at the new factory, as well as heat pumps and other industrial equipment with low energy consumption, and modern systems for collecting, treating and purifying water.

Farmec is one of Romania's largest companies, marketing its products in approximately 30 countries. Locally, as of April 2023, the network of brand stores owned by Farmec includes 8 Farmec and 20 Gerovital units opened in major cities across the country.

irina.marica@romania-insider.com

(Photo source: Facebook/Farmec)