Greek cosmetics producer Sarantis will close down its Elmiplant factory in Romania and will transfer production to Greece, the company has announced.

Sarantis, which bought the factory in 2007 from its Romanian founders, has decided to do so in order to support Greece's exports and economy.

Production for the Elmiplant, Bioten and Kolastyna face and body creams will move to the Sarantis factory in Oinofoita by the end of 2014. the research and development part will however stay in Romania, keeping the 240 jobs. Romania will become a global research and development base for Sarantis, under the helm of Elena Cremenescu, founder of Elmiplant.

The Greek company will invest EUR 1 million to transfer production and will create 20 new jobs. It also hopes to make a EUR 0.5 million cost cut a year via the move. All in all, 40 percent of the employees in Romania will keep their jobs.  At present, the Bucharest factory employs 49 people. In this moment, it is estimated that a number of approximately 30 people to be laid-off, receiving compensatory salaries at the end of their activity in the company.

Sarantis Romania currently holds the second highest position in Sarantis Group turnover from its foreign operations, reaching almost EUR 35 million of sales for 2012, according to the Greek company.

The Romanian brand, created in 1992 by Elena and Ion Cremenescu, was sold to Sarantis in 2007 for some EUR 6.5 million. Four years earlier, the Romanian owners had invested USD 1.5 million in the new production unit and headquarter in Bucharest.

Sarantis posted a turnover of EUR 16.4 million in the first half of the year in Romania, up 3.8 percent on the same period in 2012. Its EBIT profit was of EUR 680,000 during the period, a growth of 53 percent on the first half of 2012.

editor@romania-insider.com