March 7, 2008 / 11:32 AM / 12 years ago

Mitsubishi may build components plant in Romania

BUCHAREST, March 7 (Reuters) - Japanese automaker Mitsubishi Motors Corp (7211.T) is considering plans to build an automotive components plant in Romania, its president said.

Late last month, the company said it would focus on promising new car markets as it it seeks growth with the aim of more than doubling net profit in three years.

Osamu Masuko, who visited Romania to mark five years since the local Mitsubishi importer launched its operations, told state news agency Rompres his company did not intend to open a car making plant either in Romania or in Europe.

Many auto-part makers have set up shop in Romania, which joined the European Union in 2007, lured by cheap labour, a flat 16 percent tax on profits and the rising output of Renault’s (RENA.PA) Dacia plant.

Ford (F.N) will finalise a deal to acquire the state’s majority stake in Automobile Craiova — a former Daewoo plant — by the end of this month.

Over the past few months, Mitsubishi Motors has closed a loss-making Australian factory and announced an expansion of a manufacturing deal with Nissan Motor Co (7201.T). (Reporting by Radu Marinas, editing by Will Waterman)

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