Page 94 - SE Outlook Regions 2022

3.6.3 Industry

Moldova’s stronger commitment to EU integration, affirmed by the
newly elected authorities in Chisinau, is likely to result in more
investments made by European industrial groups. Better contract
enforcement and cutting the red tape — promised by the government
— are needed to address investors’ concerns, while poor transport
infrastructure remains a long-term problem.

Three Moldovan businessmen, Valentin Esanu, Andrei Zabolotny and
Alexandru Rotaru, are planning to build a metallurgical plant with an
annual capacity of 100,000-150,000 tonnes of steel upon an investment
of $16mn. Production is planned to start in autumn 2022. Esanu will
finance 35% of the investment through his company Solifarex Plus,
which collects and exports scrap metal, while the rest of the money will
be invested by his partners. The company also plans to take out bank
loans.

At this moment, Solifarex Plus exports 9,000-10,000 tonnes of scrap
metal per month to Turkey, out of which part will be used in the new
steel plant rather than being exported. The new company aims to
process the steel it produces from scrap metal, into rebar and sell it on
the local market or export it to Romania. Around 5,000 tonnes of rebar
will be exported in Romania each month, according to investors’
business plan.

The project developed by the three businessmen, who set up Omni
Steel company for this purpose, was unveiled in early November when
Prime Minister Natalia Gavrilita paid a visit to the free economic zone
FEZ Balti, which is going to host the plant. Geographically, the plant will
be located in Panasesti village, Straseni district, 30km north of
Chisinau.

Austrian group Gebauer & Griller will build its third factory in Moldova,
thus increasing its investment in the free economic zone (ZEL) Balti by
another $14mn, the company announced. Construction of the factory,
through Gebauer & Griller's Moldovan subsidiary GG Cables and Wires
EE, is set to begin in November, and 500 new jobs will be created at
the factory. The company also intends to invest another $51mn over the
next three years, which would bring its total investments in Moldova to
$72mn.

GG Cables and Wires EE was registered in Moldova in 2012 as part of
Gebauer & Griller, based in Vienna. Currently, the company owns two
production plants located in the Balti Free Economic Zone. The main
activity of GG Cables and Wires EE in Moldova focuses on the
production of insulated wires and cables.

3.6.4 Energy & power

After a brief gas crisis seemingly prompted by Moldova’s pro-EU
ambitions that were firmly expressed by President Maia Sandu and her

94 SE Outlook 2022 www.intellinews.com