20MUNICIPALITYmanufacturing of truck accessories, and equipment fortelecommunication and computers.The autonomous administration of the Free TradeZone every three months holds public auctions forland leasing to industrial, commercial and serviceenterprises. Other public auctions are organised on analmost weekly basis for renting various types ofstoring facilities: offices, platforms and land plots.Business in the FTZ recorded important growth in2001 in comparison with the year before. Theevolution of land leasing/renting and of main economicindicators is presented in tables 1, 2 and 3. Totalrevenues for 2001 went up 35.76% and return oninvestment grew 30.<strong>21</strong>% compared to 2000. Higherrevenues versus decreasing expenditures led to43.56% net profit growth over the same time span.Productivity for 2001 went up 41.26% (671 million Leicompared with 475 million Lei in 2000). The ratiobetween expenditures and 1,000 Lei revenue was463.66 Lei in 2001. In 2000, the same indicator held at492.20 Lei. Custom taxes collected for goods importedat the FTZ amounted to 1,050 billion Lei. Aside fromtaxes owed by the autonomous administration to thecentral authorities, the Free Trade Zone contributesincome taxes and social contributions ofapproximately 81 billion Lei for its more than 3,000employees. An investment project for step-wiseupgrade of the infrastructure – construction ofembankments, roads, sewerage, power lines, andwarehouses – is currently ongoing.The Free Trade Zone provides a series of facilities:- Land and constructions in the FTZ can beleased for up to 50 years to Romanian andinternational investors (individual personsand companies).- The zone has compounds and openperimeters with diverse size andfunctionality to be rented.- Activities specific to the FTZ are:manipulation, storage, sorting, processing,assembling, manufacturing, marking,labelling, repairing, disassembling ofmerchandise; organising fairs; providing ofstock market, and finance and bankingservices; domestic and internationaltransportation and shipment of goods;renting/leasing of offices, warehouses, andopen land for the construction business.- Activities carried out in the FTZ are exemptfrom VAT, excise and import profit taxes.- Foreign investment cannot be nationalised,expropriated, requisitioned or subjected tosimilar actions except in the case whenpublic interest is involved. Even so,correlated compensation would be offered tothe investor.- Goods located in the FTZ can be transferredto another free trade zone with no paymentof custom taxes. Goods can transitRomanian customs.- Means of conveyancing merchandise andother property from abroad or transiting itthrough the FTZ to international locationsare exempt from custom tax and othertaxes.- When business carried out in the zoneceases or limits operations, owners cantransfer properties and profits abroad, afterpaying obligations due to Romanianauthorities and other partners.Several important companies have operations in theFree Trade Zone:- S.C. I.C.M.U.G. S.A. – the companymanufactures drilling equipment for low andmedium depth, cast-iron parts (2,000tons/year), cast non-ferrous parts (1,000tons/year), cast-iron industrial fittings (6,000tons/year), and diverse technologicalequipment. Besides execution works, thecompany can also design products, partsand equipment of any size.- S.C. Contransimex Industry S.A.manufactures containers for the shipping ofmerchandise.- Companies that bought assets from S.C.Naval Shipyard S.A. reopened facilities forshipbuilding and the production of oxygen.- S.N. PETROM S.A. owns the only oilterminal located on the Romanian side ofthe Danube. The terminal has a storingcapacity of 50,000 tons and a 350 m longwharf.
<strong>21</strong>GIURGIUTable 1DYNAMICS OF LAND CONCESSIONED AND OWNED IN 2000 COMPARED WITH 20015<strong>21</strong>510 525826.8<strong>21</strong>600000500000MP400000300000134492 102970.642000001000000CONCESSIONED LANDLOANED LAND20002001Table 2EVOLUTION OF THE MAIN ECONOMIC - FINANCIAL INDICATORS DURING 2000-200016053,95039,740MILLEI 2920003020012220,220100% 135.76%1510100% 143.56%100% 146.66%0INCOMES GROSS PROFIT NET PROFIT
Change language