German company Nexans has changed its mind about building a car cable factory in Targu Jiu, southwestern Romania.

Elektrokontakt, its local subsidiary, had leased a 40,000 sqm plot in the north of the city to set up the plant, but later decided to stop the investment, due to financial reasons. The company will pay the fee for the period they held the plot, which is worth about EUR 22,600, according to the Targu Jiu deputy mayor Aurel Popescu, reports local Economica.net.

The factory would have provided 700 jobs in the first phase, and the number could have later reached 2,000. The unemployment rate in the county amounts to 7.3%, or about 10,800 people.

The unemployment rate in Romania reached 6.8% at the end of July.

editor@romania-insider.com