Business Review Issue 24/2012 July 2 - 8

INTERVIEW Cosmetics producer Farmec is hoping to successfully take on two new export markets this year: Russia and South Korea, says Mircea Turdean, the general manager of the company »page 11

ROMANIA’S PREMIERE BUSINESS WEEKLY

July 2 - 8, 2012 / VOLUME 16, NUMBER 24

PROPERTY

PROJECTS WITH A TOTAL VALUE OF EUR 200 MLN HAVE BEEN ANNOUNCED FOR THE WESTERN COUNTY OF CLUJ. BR LOOKS AT HOW THE REGION IS TRYING TO KEEP ITSELF ATTRACTIVE »PAGE 8

The preferences of Romanian readers are shifting towards books about education, personal development and lifestyle, say local publishers »page 10

PUBLISHERS TURN NEW PAGE ON READER PREFERENCES

INTERVIEW

NEWS

CITY

FILM

Site for sore eyes

IT&C to see funds Investment fund 3TS Capital Partners is set to launch a EUR 25 million fund for SMEs active in the IT&C and media sectors » page 5

Celebrating Celibidache

Mel hath no fury

Discount site adulmec.ro is taking full advantage of higher summer sales and is testing a UK version of its platform » page 4

The first edition of the Sergiu Celibidache Festival offered classical music fans a wealth of events » page 12

Get the Gringo sees Mel Gibson back in familiar territory, seeking revenge against criminals in a Mexican prison » page 13

www.business-review.ro Business Review | July 2 - 8, 2012

NEWS 3

NEWS in brief by one notch to Baa3, with a negative outlook. Meanwhile, deposits in foreign currency were affirmed at Baa3 with a negative outlook on long-term deposits. The bank’s financial strength rating was cut to D- with negative outlook.

AUTO Ford kicks off car production at Craiova plant US carmaker Ford has started production in Craiova, Dolj County, after investing EUR 500 million to modernize and upgrade its car plant in southern Romania, some 230 km from Bucharest. The company will produce a second engine locally from 2013. The first car to be built at Craiova is the multi-activity vehicle Ford BMAX, which will be equipped with the 1.0 liter EcoBoost engine that is also produced locally.

POLITICS Ex-PM Nastase transferred to Rahova jail hospital

ENERGY Courtesy of Ford

Parliament delays green certificate cut until 2014 The Chamber of Deputies of the Romanian Parliament has approved amendments to the emergency ordinance 88, which stipulates that the six green certificates currently granted per MWh of solar energy will be reduced from January 1 2014, if overcompensation is detected.

The law approving the amendments to the emergency ordinance that modified the renewable energy law 220/2008 needs to be rubberstamped by the President of Romania and will be published in the Official Gazette shortly.

Petrom to invest EUR 200 mln in Petrobrazi refinery Oil and gas producer Petrom will put EUR 200 million into its Petrobrazi refinery by 2014, adding to EUR 400 million it has already invested there for modernization works, in order to increase diesel output, said the company in a report sent to the Bucharest Stock Exchange. Petrom commissioned a modernized crude vacuum distillation unit in Petrobrazi during the six-week refinery shutdown this May. The company has invested around EUR 100 million in the modernization program, which started in 2009.

Enel inaugurates 70 MW wind park in Tulcea Enel Green Power Romania, the renewable arm of Italian utility firm Enel, inaugurated last week a 70 MW wind park in Valea Nucarilor and Nufaru, Tulcea County, which became operational at the end of last year. The firm has invested over EUR 330 million in Romania, reaching an installed wind energy capacity of 270 MW in 2011. The company has 202 MW of wind projects in operation and 25 MW of small hydro projects due through to 2016. It has developed wind parks with total installed capacity of 244 MW in Tulcea County, in the Dobrogea region in the southeast of the country.

This area has strong winds coming from the Black Sea.

Moody’s: Hidroelectrica insolvency hits Romania’s rating The insolvency of state-owned power generator Hidroelectrica “reflects negatively” on Romania’s credit profile, as the

IMAGES of the week President Basescu picks up first Ford President Traian Basescu was the first buyer of a new Ford B-Max, the first car built in the US carmaker’s Craiova plant. Production of this model kicked off last week after a EUR 500 million investment. government may have to pay some of the company’s debt, while delaying its stock exchange listing, warned rating agency Moody’s in the weekly credit outlook published by SeeNews. Moody’s said Hidroelectrica’s sudden filing for insolvency sets a precedent that creates uncertainty among creditors of Romanian stateowned enterprises.

IT IT&C industry posted slight growth last year The IT&C industry continued to grow in 2011 for the second year in a row, posting a 2 percent increase on 2010, according to a survey by the Institute for Computing.

“The turnover in IT&C grew by 8 percent in 2010 and 2 percent in 2011, catching up after the shrinkage in 2009 and coming back to the level of EUR 9.4 billion that the industry saw in 2008. Sold production and services posted a similar growth while total IT&C exports, which continued to grow during the entire crisis and post-crisis timeframe, surpassed EUR 4.7 billion, 55 percent higher than in 2008,” said institute officials.

HEALTHCARE Favero clinic opens in Bucharest After its launch in Great Britain, dental clinic Favero has now established a presence on the Romanian market which the company believes offers good growth prospects. The Italian dental chain has put EUR 1.5 million into opening a Bucharest

Romania’s former prime minister Adrian Nastase left Floreasca Hospital last week and was moved by ambulance to the Rahova penitentiary hospital where he will undergo further treatment, one week after apparently trying to commit suicide after his prison sentence was upheld.

“Nastase is being accommodated in the intensive care unit, with another prisoner, in a room that has two beds and a toilet,” said Nina Stroe, spokesperson for the Rahova hospital. The former PM was convicted of embezzling EUR 1.5 million of public funds to finance his presidential run-off campaign in 2004. He has been sentenced to two years in prison.

President and PM fight over EC presence

MACRO

Although the Constitutional Court ruled that the Romanian president, Traian Basescu, as head of state, should go to the European Council summit, prime minister Victor Ponta left for Brussels to attend the event which took place on June 28 and 29. In a press statement, President Basescu said, “This is the first time in 22 years, since December 1989, when a prime minister has taken the prerogative of the president, without the president’s say so.” Basescu added that he had reluctantly decided not to attend the summit, because the presence of two Romanian officials there would have created an embarrassing situation.

IMF approves fifth review of agreement with Romania

TELECOM

clinic, which joins another 20 clinics in several Italian cities and in London. The local branch is located in the City Gate South Tower and covers 500 sqm. It comprises a laboratory for implantology procedures as well as ten rooms for patients, two of which are dedicated to surgical procedures.

The executive board of the IMF completed last Friday the fifth review of the two-year standby agreement with Romania, making around EUR 520 million ready for disbursement, increasing the total funds available to the country to about EUR 2.67 billion. The Romanian authorities said they would continue to treat the arrangement as precautionary and would not draw under it. Last year the country signed a EUR 3.5 billion standby agreement with the IMF, pledging to pursue structural reforms in order to improve the macroeconomic figures.

Moody’s downgrades BRD on growing non-performing loans Rating agency Moody’s has cut the rating of BRD-Groupe Societe Generale by one notch as part of a larger downgrade of five subsidiaries of the French lender Societe Generale, whose rating was also downgraded by one notch last week, due to volatility risk, along with 14 other banking giants. BRD’s long- and short-term local currency deposits were downgraded

EC: Europe lags behind on digital agenda targets While Europeans are “very open” to digital technologies, governments and companies in the industry are failing to keep up with them, according to Neelie Kroes, vice-president of the European Commission, upon the publication of the Digital Agenda Scoreboard. The European economy is still attached to the economic models and political thinking of the 20th century. “If we do not take action, Europe will lag behind competition at international level,” warned Kroes.

OTE puts Bulgarian branch up for sale to pay debts Greek telecom group OTE, which runs Cosmote and Romtelecom on the Romanian market, is putting up for sale Globul, its mobile telephony division in Bulgaria, to buy bonds that will reach maturity over the next two years, according to Novinite.com. Potential buyers include Turkcell, Vodafone and France Telecom-Orange, according to Bulgarian media.

www.business-review.ro Business Review | July 2 - 8, 2012

4 NEWS/INTERVIEW in the amount of benefits and public services provided’ which basically encourages us to do nothing except go back down Magheru Boulevard again!

Most so-called business experts will tell organizations to “cut back” and reduce spending” during tough times which does have a certain amount of sense to it but please, please, please don’t make your business cards thinner, make them thicker. Tough times are the moments to shine above the rest, to seize that opportunity to showcase yourselves to the world, not sit on a plastic chair staring at your downward arrow on the wall chart.

OPINION Colin Lovering Crisis! 50% fact, 50% attitude?

If I hear the phrase, “Well, it’s because of the crisis” once more I promise to leap in front of the nearest tram or, easier still, jay walk, blind-folded across Magheru Boulevard.

Most of my work involves helping organizations and individuals improve the way commitment to change is simply non-existent.

I often say to salespeople, “If you wake up in the morning with a negative attitude then, for God’s sake, stay in bed because you won’t sell anything today and you will do less damage staying under the duvet!”

De-mystifying sales Now, if your business card doesn’t say ‘SALES’ on it then you will probably have a wry smile on your face right now thinking you are immune from such banter aimed at our stereotypical sales friends. Well I hate to disappoint you but we are ALL salepeople and it’s about time we all got back to basics, ignore that sometimes ridiculous or irrelevant job title we have, put our sales cap firmly on and sell, sell, sell!

A high proportion of business success originates in the areas we least expect and even a chance “hello” at a boring event can capture that elusive ‘big’ account we strive for and, of course, the company desperately needs. My point is that most organizations focus on the sales and marketing teams to be the drivers of the business growth without recognizing the huge potential and indeed, reality of the sales growth that will be born through other staff members (the guy in accounts, the lady on reception etc).

Taking the time to create and develop a ‘sales mind-set’ with the whole organization will definitely bring you more success and it’s great for bringing your teams together too.

And finally, the next time someone asks, “And what do you do?” at a dinner party, simply answer “I’m in Sales” and be very proud of it!

My definition of austerity!

Well, we’ve established that ‘crisis’ is my least favorite word and so I now bring us on to my second least favorite ….. Austerity.

If you look in a dictionary it will tell you something like ‘In economics, austerity refers to a policy of deficit-cutting by lowering spending often via a reduction

Clear out your pond!

Just picture the scene of a beautiful, quaint English village with lovely old cottages surrounding a picturesque village pond nestled neatly in the middle of a serene community. Then one very dry summer (yes it does happen in England) all the water drains from the pond revealing an almost Damien Hurst creation of old bicycles, shopping trolleys and array of unfortunate dead animals and other unmentionable objects.

This, like in business when the confidence and optimism pond is empty, is a great time to clear all of the trash out from our business, take away those ‘distractions’ that interfere with performance and get a short-term confidence and drive back into your team whilst preparing yourself for the inevitable upturn in business that your new found attitude and image will attract.

A final thought…..

In my endeavours to leave the reader wanting more, I plan to always leave you with a useful tip for developing the performance of your organization and, this week, I’m going to share a sales tip since this has been the main focus of the article.

When we go for a meal at a good restaurant we don’t need a waiter telling us the food is good, we expect it to be good! It’s the same in business, don’t get caught up in explaining the technicalities of what you do but instead focus on HOW it will make an impact on your potential client.

Robert Cialdini (The Power of Influence) shares a great tip to make a client sit up and listen. Instead of the usual “we will save you money” or “we will help you make more money” try this gem of a statement: “working with you Mr. Customer, we will show you how we can stop you losing money!” .

How powerful is that? …. Most people make decisions whether to change to save or make money, nobody in their right mind would say “It’s okay, I’m happy to be losing money” so try it and see how you get more prospect hits and appointments.

Colin Lovering cl@colin-lovering.com www.colin-lovering.com Colin Lovering is a British Business Advisor/Trainer based in Romania for over four years. With extensive experience in Management, Operations, Sales & Marketing, Colin has spent the last few years sharing his unique style and “Raising the Bar” philosophy to literally hundreds of Professionals and Businesses across North America, Europe, South Africa and China.

Discount websites strike gold in summer Discount websites are taking full advantage of the summer season, which sees many online shoppers snap up a range of the holiday, beauty and leisure-related products which are now in the spotlight. And with 50 to 60 websites on the market, they have a lot to choose from.

Alexandru Creanga, PR & marketing coordinator at Adulmec.ro website, which aggregates the offers of major discount websites in Romania, tells BR the project has even expanded to Great Britain. hold 90 percent of the market. In Romania there are approximately 10 discount websites which account for 80 percent of the market, while the other 20 percent is split among another 40-50 smaller players. Besides these, there are another 3040 websites that show up and fade away constantly. The value of the market was approximately EUR 20 million in 2011.

This year it will probably soar by up to 25 percent.

The crisis did not substantially affect this industry. The lack of substantial revenues encouraged the more rational spending of money. In fact, the market of discount coupons is not strongly influenced by macro-economic events, because offers are varied and include services and products from several categories.

∫ OTILIA HARAGA What type of discount offers sell best in Romania?

The best sold offers are those in the holiday and travel, beauty and cosmetics, food, clothes and accessories as well as health and leisure categories. Products in the home and garden range have also posted significant growth over the past half a year. As far as other markets are concerned, we can see there is more interest in offers from the category Going Out or Try a New Experience.

The seasonal factor is visible, especially in the case of holiday and travel, where in summer or close to the long holidays, there are record sales. Also in summer one can notice a spike in the interest in beauty services, including sunbed sessions, anti-cellulite treatments and diets.

What is the profile of the user of discount coupons in Romania?

It is similar to the wider profile of the user of e-commerce services in Romania. Essentially, the target public has the following demographics: aged between 20 and 40, urban dwelling, highly educated, with constant income and access to the internet both at home and at work.

How has this recently-shaped market developed?

The market of discount websites saw explosive growth last year, but in 2012 this has slowed down. The fragmentation is still rather high, unlike other markets in Europe where the top two-three websites

Where is Adulmec.ro present at the moment?

The Adulmec.ro project was launched in April 2011. Right now, Adulmec.ro is present in 10 Romanian cities, but there are numerous national offers, especially in the holiday and product ranges. The company has 10 employees. We have recently launched Adulmec.co.uk in Great Britain, and we will test the dynamics of this market.

How long does it take for such a business to establish itself?

The time that a website needs to become known to the public depends greatly on the promotion budget that is available. But no matter what the allocated sums are, it needs approximately six months to gain consumers’ trust. Entering the market is very difficult for a newcomer because the offer is already very varied and there are several strong players. Attracting a user from an existing discount site to a new one is highly unlikely, and the pool of new users of discount coupons is becoming limited, with the consolidation of the market. The best way for discount sites to promote themselves is through offers. A very good offer will go viral on social networks and will gain visibility through aggregation websites.

Since competition is fierce, gaining and keeping users is very expensive. Much of the investment goes on marketing budgets to ensure the necessary distribution for a corresponding volume of sales. The fixed costs for such a business are high and so the promotion component needs to be sufficient to cover these and bring profit.

otilia.haraga@business-review.ro

www.business-review.ro Business Review | July 2 - 8, 2012

NEWS 5

INVESTMENT

HUMAN RESOURCES

3TS Capital to launch EUR 25 million fund for SMEs

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rivate equity and venture capital firm 3TS Capital Partners will next month launch a EUR 25 million fund called 3TS Catalyst Romania to target Romanian small and medium enterprises active in the IT&C and media sectors.

The fund has been set up with the support of the Jeremie initiative of the European Commission, which allows financing for SMEs through structural funds.

“The first closing will be made at approximately EUR 25 million, expanding to EUR 30-35 million at the second closing, and we will target Romanian SMEs in the technology, media and telecom sectors. We are especially interested in software and online,” Mihai Sfintescu, partner at 3TS Capital Partners, told BR. Sfintescu added that the fund has a EUR 100 million exposure in Romania, with investments in IT&C and services.

3TS has invested in Avangate, an e-commerce solutions provider, to support its

global expansion. It also invested in Romprest, a Romanian facilities and waste management company, and in the online publisher Internet Corp.

The Euro zone crisis, which has hit peripheral countries the most, has indirectly affected the fund’s operations in Romania.

“The crisis has reduced purchasing power in Romania and made bank financing more expensive so the portfolio was affected. I think every company was more or less affected,” said Sfintescu. “Overall, we have continued to develop and the portfolio is looking good. A better macroeconomic situation would have helped us perform even better.”

3TS is active in Central and Eastern Europe and is currently the advisor of three funds amounting to EUR 230 million. Sfintescu was speaker at a conference organized last week by the South Eastern Europe Private Equity Association (SEEPEA). ∫ Ovidiu Posirca

STOCK EXCHANGE

Property Fund receives green light for Warsaw listing

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hareholders in the Property Fund (FP) approved last week the secondary listing of the closed-end fund on the Warsaw Stock Exchange (WSE), hoping to bolster demand for shares, which will be available to a larger pool of international investors. The listing had already been approved in principle this April.

Initially there will be a technical listing without shares being sold, based on a listing memorandum that doesn’t require the approval of regulatory bodies.

Greg Konieczny, fund manager at FP, said that the memorandum would be drawn up in 10 weeks, while it will take another two to three weeks to obtain additional approvals.

However, this could be delayed if the depositary link between Romania and Poland is not established.

“Up to now, we have been able to attract more than EUR 600 million of fresh investments in the Romanian market, a situation that hasn’t happened in years.

We plan to continue to do this but we need some support from local authorities.

We can’t say everything is great and when investors come and hear about the issue with the link, they say: ‘If they don’t want you, why should we invest in the fund?’” said Konieczny.

Once listed on the WSE, the FP will

look to increase liquidity by attracting international investors and facilitating accelerated book-building placements or individual trades on the WSE. The FP will be advised on this transaction by a consortium comprising JP Morgan, the investment bank, and UniCredit Group as global coordinators, and KBC Securities, the brokerage, as comanager.

Deloitte has been selected as auditor, while law firms Weil and PeliFilip will act as the banks’ international and domestic counselors. The issuer’s international and domestic counsel is currently going through the tender procedure.

The secondary listing has estimated costs of RON 10.7 million (EUR 2.4 million).

The fund has capped the consortium’s fees and expenses at EUR 1 million, while around EUR 500,000 will go to the law firms.

The FP had a market capitalization of EUR 1.52 billion in May, with an average daily turnover of EUR 4.45 million. Its largest shareholders are US hedge fund Elliott Associates with a 13.9 percent stake and British investment management firm City of London, which holds 7.2 percent of the shares. ∫ Ovidiu Posirca

In last week’s issue of Business Review the article ‘China prepares for challenging times’ mistakenly identified the source of the Investment in PRC report as being KOMPENI. The author of the report is KPMG. Another survey quoted in the article was quoted as belonging to HSU. The author of the survey was HSBC.

Consortium terminates headhunting contract with Ministry of Economy

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he Ministry of Economy and executive search firm Pedersen & Partners have ended by mutual consent a consultancy contract for the selection of private managers for state-owned enterprises. The two parted company in May. A consortium made up of Pedersen & Partners, law firm NNDKP and consultancy firm Roland Berger was selected by the state last October to participate in the process of selecting private management for key state-owned enterprises (SOEs).

Romania has pledged to appoint private management at several SOEs as part of a EUR 5 billion agreement with the IMF, European Commission and World Bank. Pow-

er generator Hidroelectrica, the Romanian Post, gas network operator Transgaz and natural gas producer Romgaz are some of the companies that will have independent board members and private managers.

However, in the year to date none of these companies has appointed a private manager.

Pedersen & Partners said the contract was scrapped because the Ministry of Economy is considering another option for the recruiting process. Last November the country approved a law implementing corporate governance at SOEs, and the private managers should have come in next. ∫ Ovidiu Posirca

PROPERTY

Floreasca Park half pre-leased to Oracle

D

eveloper Portland Trust and AREA “There are quite severe penalties if the schedule is exceeded by up to two months,” Property Partners have launched added Nale. BogArt, whose contract values Floreasca Park in Bucharest, a EUR EUR 39 million and can give the firm at 70 million office park made up of two most 5 percent profit, has two-three weeks class A office buildings with a total leasable to build each of the six floors of the buildsurface of 37,500 sqm. More than half of the investment, which totals EUR 40-50 million, ing.

More than half of the surface (aphas come from BCR financing. “The bankproximately 20,000 sqm) has been preing world hasn’t entirely collapsed. There leased for ten years by Oracle, and the Adis still intense financing activity,” said visers/Knight Frank, the company apRobert Nale owner and managing director pointed exclusive leasing agent, has anof Portland Trust. The business park has as other 7,000 sqm under negotiation. ∫ main contractor BogArt and is planned to Andreea Ceasar be delivered by the last quarter of 2013.

www.business-review.ro Business Review | July 2 - 8, 2012

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US businesses call for predictability on local investment scene Agriculture, IT&C, the automotive sector, defense and energy are some of the most important growth sectors awaiting investment in Romania, but if they are to prosper they need more predictability and policy that doesn’t harm investors, said business community representatives who attended the fourth edition of the American Investors Forum organized by BR last week. ∫ OVIDIU POSIRCA

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Bright skies ahead “Romania has everything going for it: You have the Black Sea ports, you’ve got the Danube River, you’ve got incredible agricultural potential, you have non-ferrous metals, you have energy, an educated population and the second largest land mass and population in Central and Eastern Europe. It’s up to the government to put in place policies that maintain a certain level of transparency and also predictability,” said James Daniel Stewart, vice-president at Raiffeisen Bank and board member of the business advocacy group AmCham.

Camelia Sucu, owner of Piata de Gros, a wholesale market for agricultural products in Bucharest, said that Romania has 9.6 million hectares of agricultural field and not all is currently used. “We have great potential due to the quality of the soil. We have a lot of people working in agriculture abroad willing to come back, if they now have the same salary as in Poland or Spain,” said Sucu. Apart from the natural resources, Romania boats skilled human resources which have convinced large American corporations such as General Electric, Microsoft and Emerson to gain a significant foothold in the country.

“We are putting our outsourcing centers here to serve other countries, and I am very proud of it as the one we set up in Romania is of the best quality in Europe. This is why we are investing more and more,” said Ronald Binkofski, general manager of Microsoft Romania.

Binkofski added that the unique intellectual property behind a company can attract the attention of foreign investors.

Politicians are talking about turning Romanian into an outsourcing center for the world but this will only prove that the country is not competitive in its own right on the international market, according to the Mi-

All photos: Laurentiu Obae

The US and Romania reached a new broader and deeper stage in their bilateral relationship last year after a joint declaration on strategic partnership for the 21st century was signed in Washington, along with the agreement on the deployment of the US ballistic missile defense system in Romania, according to Bogdan Aurescu, state secretary in the Ministry of Foreign Affairs.

Aurescu said the two countries have an excellent political partnership, while military and strategic cooperation, including intelligence, is well developed, although the economic area needs further improvement.

The state secretary added that financial exchanges between the two countries reached USD 2.3 billion at the end of 2011, while the value of American investments in Romania came close to USD 970 million, making the US the twelfth largest foreign investor in the country.

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1. The panel, moderated by Oliver Olson, Maastricht School of Management Romania, discuss Romania’s economic potential 2.

Keith Kirkham, US Embassy in Bucharest 3. Manuela Furdui, Finexpert 4. Ronald Binkofski, Microsoft Romania 5. James Daniel Stewart, Raiffeisen Bank, AmCham 6. Bogdan Aurescu, Ministry of Foreign Affairs 7. Camelia Sucu, Piata de Gros

crosoft GM. Creating jobs in a tough economic environment is a challenge for all countries, but Romania is trying to tackle it through a state aid scheme that grants money to companies that are investing and creating jobs locally. The state aid scheme in Romania is regulated by government de-

cision no. 1680/2008 and runs through to the end of 2013, with a total initial budget of EUR 1 billion.

“Up to now 24 companies have been granted state aid for investments of EUR 1.3 billion, creating 6,300 new jobs. This scheme is available until the end of 2013

and 60 percent of the funds are still available,” said Manuela Furdui, managing partner at Finexpert accountancy. The firm’s portfolio on approved incentives stands at EUR 117 million, and includes companies such as Pirelli Tyres Romania and Lufkin Industries.

www.business-review.ro Business Review | July 2 - 8, 2012

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1. Manuela Plapcianu, Artmark (left) in discussion with other event participants 2. Anca Harasim, AmCham 3. Bryan Jardine, Wolf Theiss

Companies that want to apply for state aid need an investment larger than EUR 5 million that creates more than 50 jobs, according to Furdui.

Investors who consider Romania a good business destination may gain further trust in the country from a security point of view, as it will have an operational missile defense shield from 2015. The US will award contracts worth USD 350-400 million for the building of the base in Deveselu, Dolj County, and Romanian companies are able to take part in the building effort, according to Aurescu.

“An enhanced level of national security means a safer and more attractive business environment,” said Aurescu.

Clearing the fog of uncertainty Romania is certainly looking good from a broader perspective, given its natural assets and potential in many sectors, but foreign investors established here believe that more needs to be done in order to make businesses run more smoothly.

“The saddest thing to see here is that there is tremendous potential, but sometimes things are broken, and sometimes someone wants it that way. And that’s what’s got to change. A foreigner can’t do it for Romania. I want to see it succeed. With just a few small changes it could do so much better, but we can’t do it for them,” said Keith Kirkham, senior commercial officer of the

commercial section at the US Embassy in Bucharest.

The recent insolvency of Hidroelectrica, the state-owned power producer, came as a shock for the business community, and is the clear evidence of unpredictability that may scare investors, said the event speakers.

“What people I think did not realize is that for a company in insolvency – and Hidroelectrica has around EUR 800 million in outstanding debt – the banks have to provision 100 percent of that, which in some cases could virtually wipe out the capital of the bank,” said Stewart at Raiffeisen Bank, which is not exposed to Hidroelectrica.

The unpredictability is also eating into

the value of state-owned companies that are planning to sell minority stakes in the near future.

Stewart said that investors in London were willing to buy shares in Petrom, Transelectrica or Transgaz, but they were asking for a massive discount that wouldn’t allow the government to sell at that price.

Investors looking to do business in Romania should carry out a due diligence process in order to know who their potential partner is, while not forgetting to look thoroughly at the books, concluded the panelists.

ovidiu.posirca@business-review.ro

www.business-review.ro Business Review | July 2 - 8, 2012

8 PROPERTY

Cluj news: the western county has been the focus of much investment news of late – but will all the projects reach fruition?

Money goes west as Cluj becomes magnet for investment After years of being in the shade of the capital Bucharest, Cluj County seems to be enjoying its moment in the sun. The western county has scooped up some of the most important investments in recent times, with EUR 200 million of projects announced. But will they all be realized? ∫ ANDREEA CEASAR Close to the border with Hungary and Western Europe – where raw material comes from and the majority of products go to export – Cluj County seems to have made a good impression on manufacturers and logistic developers. Its location and current mayor, the former prime minister Emil Boc, have ensured investments have found their way here.

Cluj has been buoyed by the absorption of structural European funds, accessing EUR 96 million by the end of last year according to the paper, National Analysis Regarding the Capacity and Involvement of Public Administration in the Absorption of European Funds for Developing Romanian Communities, written by the Institute for Public Policy (IPP). The direct effect of funds which are invested well is to increase the quality of infrastructure and life and bring… investors.

According to IBC Focus, a local research company in the construction field, the figures suggest that the amount of investment will increase by approximately 8 percent in comparison with last year.

“But 48 percent of the total announced projects are in the design phase, and only for half of them has construction already started. The fact that the elections are over will help private construction, as we were told by many managers that the

political environment had slowed down some work during this period,” said Adriana Bodron, managing partner of IBC Focus. According to Bodron, in 2011 the value of projects fell by 30 percent in comparison with the previous year. And while in 2010 there were 450 mid-sized and large investments, in 2011 the number fell to 320 private investments, 29 percent fewer.

Last year’s decision by the global mobile manufacturer Nokia to leave Jucu industrial park, Cluj, was a major body blow to the Romanian economy, as the firm was contributing 1 percent of the country’s GDP. But life didn’t stop in the area.

The Cluj authorities announced last week their plan for a fifth industrial park – Tetarom IV – with a 60-hectare surface in Luna County, which should absorb the unemployed from the steel producer Mechel Campia Turzii, which fired 1,000 workers in April. In Cluj there are no fewer than three other already built and functional industrial parks: Tetarom I in Cluj-Napoca with 25 firms, Tetarom II with the global leader in technology and engineering Emerson’s three factories and Tetarom III in Jucu where mobile manufacturer Nokia used to operate and where DeLonghi and Bosch will work from.

Robert Bosch has also announced a EUR 120 million investment plan for the Cluj area. The production unit in Blaj will be

expanded by more than 21,000 sqm, with an investment of EUR 43 million, while a new production facility will be opened in Cluj, requiring the other EUR 77 million.

And there is a fourth industrial park under construction designed for small and medium businesses in Feleacu County, making up 85 hectares, of which 15 are reserved for the building of a photovoltaic park. The total investment is around EUR 11 million.

The title of industrial park means five years tax free, courtesy of the municipality for tenants, with exemptions from customs duties and import VAT for machinery, equipment, materials and the

tools necessary for the investment, plus exemptions from tax on reinvested profits in technology, infrastructure and so on.

This explains the keen interest from investors.

A brand new, and unexpected, EUR 200 million speculative investment announcement has also been made by Graells & Llonch for a 540,000-sqm industrial park in Turda. Approximately 300,000 sqm will be dedicated to production and small industry investments in the automotive, FMCG and textile industries, while 200,000 sqm has been given over to logistic space. “We had been thinking about investing in a second Romanian park after the success of the former industrial park in Prejmer, Brasov. The possibility came about through our partner Europa Capital, which offered us full management of the Turda project,” said Antonio Graells, co-owner of the project.

At this moment 25,000 sqm has already been pre-leased. The site will also be an industrial park.

And investments in production don’t stop here. Macromex, one of the largest local frozen products distributors, has announced a EUR 40 million investment in Campia Turzii to develop its existing factory, while the Dutch producer and exporter of metallic parts CSI Invest is putting EUR 8.5 million into a new facility.

Retail boost The announcement and in particular completion of investments prompts local consumers to shop more and spend more money, which is why supermarkets and DIY players have been showing interest in the area since the beginning of 2011. Last year Dedeman opened a 16,000-sqm store with an investment of EUR 16 million, and this year BauMax set up its second outlet, a EUR 20 million, 15,000-sqm branch in Cluj-Napoca.

Hornbach is also analyzing a possible entrance on the virgin market. “As we are looking at cities of over 300,000 inhabitants we can say that on our list for future investments you can find Cluj, Constanta, Craiova and Iasi,” said Dan Badescu, expansion manager of Hornbach, after announcing a EUR 30 million investment in a store in Timisoara. Rumors are also circulating that Dedeman may open its second local unit in 2013. Lidl, Billa, Profi, Altex, H&M, New Look and Douglas were also major investors last year.

New business, new offices

Vacancy rate for office space in 2011 Class A Class B 10 percent 12 percent

The lack of funds and austerity of banks manifested itself in a reduction in the number of offices launched on the market in 2011. But Cluj can brag about some interesting projects. British architectural firm Chapman Taylor has just won the design brief for Liberty Center Technological Park, a project which will partly replace a former furniture factory. The project is a EUR 26 million investment made by Fribourg Development. Work on the first phase, which consists of 7,000 sqm of office and retail space, should start by the end of this year. The total surface of the old factory is 45,000 sqm, but the project will include 22,0000 sqm of office and retail space. Last year Iulius Group also announced a EUR 20 million investment in an office building, and Transilvania Bank a EUR 5 million office building in Tetarom I Park, according to an annual real estate analysis by local research company Darian.

Source: Darian

andreea.ceasar@business-review.ro

Average rents in commercial spaces EUR/sqm in 2011 Anchors Galleries

7–11 15–25

Vacancy rate of industrial space 2011 <3,000 sqm 10 percent 3,000–10,000 sqm 13 percent >10,000 sqm 15 percent

10 FOCUS

www.business-review.ro Business Review | July 2 - 8, 2012

Publishers lay out new chapter in readers’ choices Readers are increasingly keeping up to speed with emerging titles, while their genre preferences are also changing, placing the focus on education, personal development and lifestyle. However, the figures do not look very encouraging for publishing houses, neither when comparing purchasing power in Romania to other European states, nor when it comes to the local appetite for reading. ∫ OTILIA HARAGA As time and economics change over the years, so does the behavior of the bookworm. “The sharp decline in purchasing power has sparked interest in very cheap books, under RON 20,” Marin Vidrascu, executive manager at Litera, a publishing house which posted a turnover of EUR 10 million last year, tells BR. Meanwhile, local readers have also changed their selection patterns, he says.

“Romanians have started looking for new authors, titles that have topped the charts in other countries. Self-help and practical books have posted a significant hike over the past few years. People are becoming attentive to their lifestyle; they are seeking more and more information in domains such as food, personal development and family planning.” Among belletristic (ed. note: works that value aesthetic effect over content) titles, women’s literature is a clear market leader, “which is a very common trend in many countries,” says Vidrascu.

Children’s book sales have a slightly seasonal pattern. “In summer, a great deal of books for activities and entertainment are purchased, while in fall and winter, parents invest in dictionaries and educational titles,” he says. Litera aims to continue its Bestseller series with The Terracotta Army by John Man, a title “for history aficionados,” says the director. The new IQ230 collection will also be expanded with the books Sex at Dawn: The Prehistoric Origins of Modern Sexuality by Christopher Ryan, and The Masters of Thought. The Most Important Philosophers of the 20th Century, by RogerPol Droit. “For children, we are preparing a great deal of new books: educational content activities, entertainment and many stories,” says Vidrascu.

Among the most in vogue titles published by Litera are works of fiction such as Sarah’s Key by Tatiana de Rosnay, which has sold about 10,000 copies, and the novel One Day by David Nicholls, whose film adaptation enjoyed success in Romania.

The non-fiction category has included Hitler’s Warriors by Guido Knopp, and The Next 100 years by George Friedman.

Of the new IQ230 collection, Intelligent Memory by Joshua Foer and Who Am I by Richard David Precht have sold very well.

“Lately, there has been a hike in the number of readers who prefer premium, hardcover, polychrome books and albums. In Romania, non-fiction is more popular; readers are interested in their education and choosing more and more often to invest in this direction,” Maria Desmirean, executive manager at Curtea Veche Publishing, which has an annual turnover of almost RON 13 million (approximately EUR 3 million) and expects 15 percent growth in

Book value: e-books are on the rise as are self-help manuals, but Romanians still purchase just one book a year on average authors etc. represent approximately 10 2012, tells BR. In the non-fiction category, not including editions sold at kiosks and the textbooks. “Since the financial crunch hit, percent of the total revenues. Given the prereaders buy business, personal and procarious distribution system in bookstores, the decline in the book market has amountfessional development books, healthcare we have found alternative ways to meet our ed to around 40 percent,” says Vidrascu. titles, books about child education and the readers: in parks, at the workplace and at One field bucking the trend is electronic family, cookery books and children’s literbooks, a sector with very positive prospects. book fairs,” says Desmirean. ature. “Romanians’ consumption of culture For Curtea Veche Publishing, sales at is starting to resemble more and more the “To be able to speak about a digital book marthis year’s BookFest were 15 percent highket, the offer should comprise at least patterns in Western countries,” says 4,000-5,000 titles in electronic format, er than last year.

Desmirean. namely those titles that attract most sales “Book fare sales are low in terms of perThis year Curtea Veche will publish centages, but they are a good opportunity in print too. Unfortunately, few publishing Masinile Regelui (The King’s Cars) by Prince to meet our readers and get fast feedback houses in Romania have started to sell eRadu, Jamie’s 30 Minute Meals by Jamie on our new titles,” says Vidrascu. books,” says Vidrascu.

Oliver, Retete vegane fara foc (Raw Vegan Bookworms who visited BookFest spent on Litera publishing house has in its portRecipes) by Ligia Pop, Midas Touch by average EUR 10 per person on their favorite folio around 500 e-book titles. By the end Robert Kiyosaki and Donald Trump, Aimer title. By the time it closed its gates on of the year, another 200 will be added to the et se le dire by Jacques Salome. The pubJune 3, BookFest had had approximately electronic roster. “All royalty contracts for lishing house is already seeing titles such 90,000 visitors, 12 percent more than the fiction and non-fiction for adults are signed as Sanatatea are gust (Health Has a Taste) previous year, and 150 book exhibitors on for both formats, so consequently, from

by Mihaela Bilic, Jamie’s Ministry of Food a surface of 10,000 sqm. now on, all our books will be launched alby Jamie Oliver, Eu si timpul (Time and Me) “Humanitas publishing house proposed most simultaneously in traditional and eby Margareta Paslaru, Anul Regelui (The 100 new titles for the BookFest public. We book formats,” he adds.

Year of the King) by His Royal Highness had 20 launches in total and 40 invited Curtea Veche publishing house will Prince Radu and The Power of Now by Eckguests at the editorial stand. The revenues also launch the first e-books on the market hart Tolle selling like hot cakes. clearly exceeded the level achieved in 2011,” edited in-house at the end of the year.

At the moment, the book market in Rosays Lidia Bodea, general manager of the “In Europe, sales of e-books have seen mania is rather small in relation with the significant growth over the last three years, Humanitas publishing house. country’s population. “The latest statisti“Our estimations are 20 percent higher and we believe Romanians will also acquire cal data show that the average Romanian sales on last year and over 12,000 sold books. the taste for this format, if they see a conbuys one single book per year while a typBelletristic, followed by personal develsistent range,” says Vidrascu. ical German buys 13 on average,” says opment books, led the sales,” says In order to whet the cultural appetite of Vidrascu, who attributes this mainly to the Mario Demezzo, CEO of the ALL Editorial the cash-strapped Romanian reader, publow purchasing power, which has been Group. lishing houses also rely on book fairs and shrinking steadily in recent years. other related events.

In 2010, the book market was estimat“Revenues from book fairs, events with ed at somewhere around EUR 60 million, otilia.haraga@business-review.ro

www.business-review.ro Business Review | July 2 - 8, 2012

INTERVIEW 11

Farmec charms its way to growth on ugly market Between the crisis and lack of government support, cosmetics firm Farmec Cluj-Napoca has set optimistic targets for 2012, rolling out investment plans and hoping to charm Russians and South Koreans with its beauty products, said GM Mircea Turdean. ∫ SIMONA BAZAVAN

What sort of problems with the state?

We have been waiting to recover VAT for more than a year. A month ago we received a letter from the authorities saying that the state doesn’t have money to pay the VAT and we must wait. The legal deadline to recover VAT is three months.

That is our money and it is our right to recover it. Not to mention the taxes we pay which are at the level of last year’s profit and which reach a nice sum. As for the issue of the alcohol excise tax, we have lobbied for this on all possible channels. The alcohol which is used in the cosmetics industry is taxed in Romania, although this doesn’t happen elsewhere in the EU. Here, too, we have to recover money from the state and the delays cause cashflow problems. This excise tax cost us a EUR 6 million contract two years ago.

And all this happens even though we are a successful large company. There are also inspections from the Financial Guard and the Customs Office which we are dealing with on a monthly basis.

Regarding the VAT, we have referred the issue to lawyers. We are a private com-

What are Farmec’s objectives this year?

The turnover and the profit are two important objectives. Last year the turnover was RON 110.9 million (EUR 26.2 million) up 15.6 percent y-o-y. In the first five months of 2012 we grew by another 8.5 percent to EUR 11.5 million.

This year we also plan to increase exports by 40 percent and to increase the production of private label products. This currently has a share in the total volumes of about 4 to 5 percent but the target is to boost it over the next five to six years, but by no more than 25 percent.

We will continue to invest in technological upgrades. This is a continuous process for us in order to maintain low costs and constantly improve productivity. Overall, this year we have an investment budget of about EUR 600,000.

We will also continue to launch new products as we plan to maintain our market share and the market leader position we have on several segments.

What profit did the company report last year?

In 2011 we had a profit of about EUR 2.3 million compared to EUR 2 million the previous year. This year we plan to increase it further although this is not an easy thing to accomplish in the present context and given all the issues I have mentioned. Sales grew by 8.5 percent in the first five months, more than the 5 percent target we set for this year, and if the trend is maintained we will be satisfied with the results. Now God forbid the government invents some new taxes and comes up with some genius plan to collect more money. Because when they set out to do that, they usually target large and medium-sized companies with good results. I wish they were intelligent enough to understand that supporting businesspeople and the economy is the way to solve things.

What changes do you think should be made at central level that would also positively impact the business environment?

Promoting professionals in the public institutions would the first thing. I understand that ministries must be led by politicians but they in their turn should lead teams of professionals. Of course, there is also the question of VAT, which should be lowered, and to once and for all address the issue of the excise tax on al-

Photo: Laurentiu Obae

After Farmec’s business increased by 15.6 percent last year, the target you’ve announced for 2012 is only 5 percent. Why this downsize?

Because of the market conditions, because of the crisis which is not yet over and also the shrinking purchasing power.

And yes, I would say that 2012 is worse than the previous year for Romania from an economic perspective. It will definitely not be the year when we see the end of the crisis. More than 80 percent of our consumers are Romanians and if their purchasing power decreases, it makes it hard to sell the volumes we have targeted. Even if we, as market leader on several segments, manage to gain additional market share from our competitors, the market itself doesn’t grow. As for what 2013 will bring it is very hard to make predictions.

Another aspect we recently witnessed is price increases in the raw materials we use. In the cosmetics industry we have to import most of these raw materials – about 80 percent if not more. We had some domestic suppliers but they closed down. In relation to this there is the exchange rate which is not favorable and which, at the end of the day, affects profitability. There are also problems with the state in recovering the money we are entitled to receive. But even so, we have had relatively good results, growing by 8.5 percent in the first five months of this year to EUR 11.5 million.

pany, we work for our money and we want to be respected. Elsewhere in Europe, the state supports private companies. It would be nice if that were the case in Romania too, but we just want not to be hindered.

CV Mircea Turdean A graduate of the Chemical Technology Faculty in Iasi as well as the Open University Business School, he joined Farmec in 1994 as technician, later becoming researcher and department manager. Nine years later Turdean was promoted to technical director, tasked with coordinating production, research and new investments. In 2010, he was appointed managing director, replacing his father, Liviu Turdean, who had held the position for more than 40 years. The Turdean family is the main shareholder in Farmec Cluj-Napoca. cohol used in the cosmetics industry. We are the only European country where this happens. There is talk about harmonizing our laws with European ones but this is done only where it suits us.

How much do you export currently and what will Farmec’s export strategy be this year?

About 10 percent of our turnover comes from exports. This year I have set the target to increase exported volumes by 40 percent and thus take their share in the total turnover to about 16 percent. Judging from the results in the first few months we are on the right track.

We plan to achieve this growth by increasing sold volumes on our tradi-

tional external markets but mainly by entering new ones and changing the approach.

We traditionally export to over 40 countries but through partnerships with a large number, about 100, smaller companies. Now we are mainly focusing on neighboring markets and we have changed the strategy, even though this means investing more. Last year we entered Hungary, where we chose a large distributor which does business with the all the important retail chains present there.

Sales in Hungary amounted to EUR 300,000 in 2011 and this year they should reach EUR 500,000. We will apply the same strategy this year in Poland and Ukraine. Next year we plan to enter Russia and South Korea.

Hungary has now become our largest external market, even though two years ago we weren’t present there. It is followed by Japan where we have been present for more than 40 years and export about 75 percent of the volumes sold in Hungary, followed by countries in the Middle East, where our brands are very popular. We also export to Australia, the USA, South American countries, Spain and many other places.In order to further grow we cannot rely solely on the domestic market. And it would a pity not to take advantage of a brand such as Gerovital which enjoys fame both in Romania and abroad.

simona.bazavan@business-review.ro

www.business-review.ro Business Review | July 2 - 8, 2012

12 CITY FESTIVAL REVIEW

Classical music fans celebrate Sergiu Celibidache with wealth of events As the first edition of the Sergiu Celibidache festival draws to an end, Business Review takes a look at the diverse cultural events that were held in celebration of the iconic Romanian conductor’s centennial.

ANDREA OVANEZIAN While you may be familiar with the latest vogue in business education – “master classes” in business management and professional development – you may be surprised to find out that this “new approach” follows on from a long tradition of master-class education in the arts, most notably in music.

Three films currently playing at Grand Cinema Digiplex as part of the Sergiu Celibidache Festival capture the inner workings of the musical master class, as well as leadership and teamwork in an orchestral context. Although I cannot laud these films as preeminent examples of documentary filmmaking, I warmly recommend them to viewers who are avid fans of the Romanian conductor and symphonic music, or those who may be interested in learning more about the dynamics of conducting and master-class education. These “music documentaries” (which I saw in reverse chronological order) offer a mosaic of rare glimpses into Celibidache’s musical aesthetics and life, without however providing a comprehensive or balanced biographical context.

Originally filmed in several languages (French, German, Italian, English, Romanian), the three documentaries include Romanian subtitles and explanatory text.

The garden Sergiu Celibidache’s Garden (142 minutes, 2009, directed by Serge Ioan Celibidache) focuses on several master classes held by the conductor in France, and interviews with him at his country estate near Paris (La Neuville-sur-Essonne). The film portrays Celibidache during the latter part of his life and illustrates his central aesthetic line – that there are many ways to say “no” (teach what is wrong), but only one way to say “yes” (teach what is right) which ultimately musicians must discover within themselves. The more unusual moments of the film occur when a group of Buddhist monks visit Celibidache at his French estate, and contrast the singing styles of identical birds in their monastery and in Celibidache’s garden. Although the film lacks an appropriate dose of editing and will challenge any aficionado’s patience at 142 minutes, this was nonetheless my favorite documentary – an intimate and poetic homage to Celibidache directed by the conductor’s son.

Letting it evolve Celibidache: You Don’t Do Anything, You Let It Evolve (100 minutes, 1992, directed by Jan Schmidt-Garre) portrays the middleaged Celibidache and focuses on rehearsals of the Munich Philharmonic, interviews with the conductor and other musicians.

Master: the work of Romanian composer Sergiu Celibidache is being marked and a dictator. Curiously absent from all Although a “flat” documentary (coming in at a much lower pitch than the other two), three documentaries is perhaps the most documented controversy involving Abbie the film provides some fleeting glimpses Conant, a trombone player with the Muof the controversial side of this worldnich Philharmonic under Celibidache’s renowned conductor, which are often igtenure as music director, and her ultinored or glossed over by his fans. In one segment taken from local film archives, mately successful 12-year legal battle to prove charges of gender discrimination.

Celibidache meets adoring fans after his The story behind this controversy and its 1990 performance in Bucharest (soon afrevolutionary impact on the classical muter the fall of Ceausescu). He bluntly acsic world is insightfully captured by author cuses the Romanian “intelligentsia” of alMalcom Gladwell in the concluding chaplowing musical mediocrity among their ter, Listening with your Eyes – the Lessons ranks (alluding to the Romanian conducof Blink (his 2005 book about the perils of tor Mihai Brediceanu), sharply dismisses their blaming of the Communist regime “thin-slicing” in decision making). and states that everyone was responsible for such mediocrity (surprisingly, the fans Born to conduct smile and nod their heads in agreement). In Nascut Roman Sa Dirijeze O Lume (80 another segment based on interviews minutes, 2012, co-production TVR and with musicians in Israel, an orchestral Fundatia Celibidache) portrays the younger colleague of Celibidache’s affectionately (but still internationally famous) Celijokes about the numerous music “scandals” bidache, focusing on his Romanian conassociated with the conductor, and concerts and interviews from the 1970s and cludes (without mentioning any particu1990. Unlike the other two documentaries, lar episode) that Celibidache typically got this one provides actual concert footage his way by threatening to leave an orand more biographical information, albeit chestra. In segments from each docuin a distracting and hard-to-read scrolling mentary, we encounter Celibidache actext at the bottom of the screen. knowledging (neither apologizing nor denying) that as a conductor he was often More Celibidache described as a megalomaniac, a tyrant If you are left wanting more Celibidache, I

also recommend two of the festival concerts at Ateneul Roman which will feature original Celibidache compositions. The July 30 opening concert will feature his 1978 composition The Pocket Garden (a 13part suite for orchestra), to be performed by the Romanian Youth Orchestra and conductor Cristian Mandeal.

The July 7 closing concert will feature the world premier of Celibidache’s composition Haz de Necaz (a Romanian suite in eight movements), to be performed by the George Enescu Philharmonic, pianist Dan Grigore and conductor Mark Mast.

Lastly for you die-hards, two books were recently published in Romanian by Editura Spandugino and launched at the opening of the festival in May. Despre Fenomenologia Muzicala by Sergiu Celibidache (112 pages, RON 42) is based on the only public lecture the composer gave on this important topic in Munich (1985) and includes his notations to musical scores and other schematics, and is a rarity given that none of his essays or journals has been published to date. Celibidache – Intalniri Cu Un Om De Exceptie by Stephane Muller and Patrick Lang (184 pages, RON 32), which was written as a companion edition to the documentary film Sergiu Celibidache’s Garden, is based on interviews with the conductor and his son (the film’s director), as well as the authors’ testimonials. ∫

The documentaries in the festival are playing until 6 July at Grand Cinema Digiplex/Baneasa Shopping City, reservations telephone 074 265 4321, schedule available at www.grandcinemadigiplex.ro/#program The program for the first edition of the Sergiu Celibidache festival is at http://www.fundatiacelibidache.com/program-festival . UNESCO has dedicated 2012 the commemorative 100th anniversary of the birth date of Sergiu Celibidache (1912-1996).

Serge Ioan Celibidache is a film director and script writer, and serves as the president of Fundatia Celibidache, which launched the first Romanian edition of the festival. He was born in 1968, when his father was 56 and his mother 44.

Director Jan Schmidt-Garre produced three additional documentaries about Celibidache: Celibidache In Rehearsal/Anton Bruckner (1993), Celibidache in St. Florian (1993), and Celibidache Rehearses Bruckner’s Ninth (2006).

Conant’s version of the controversy was published in an article written by her husband in 1994, available at http://www.osborne-conant.org/ladies.htm Both books can be purchased online at www.edituraspandugino.ro

www.business-review.ro Business Review | July 2 - 8, 2012

CITY 13

FILM REVIEW

Get the Gringo DEBBIE STOWE Director: Adrian Grunberg Starring: Mel Gibson, Kevin Hernandez, Daniel Giménez Cacho, Dolores Heredia, Peter Stormare On at: Cinema City Cotroceni, Cinema City Sun Plaza, Grand Cinema Digiplex Baneasa, Hollywood Multiplex, Movieplex Cinema, The Light Cinema Mel Gibson is a clown. I’m not referring to Mel’s alleged drunkenness, criminality, domestic violence, anti-Semitism, misogyny and homophobia, I mean on screen. In the opening sequence of Get the Gringo, Mel and his wounded buddy, both clad in clown suits, are speeding away from the California cops with several hold alls full of stolen cash. We know we’re supposed to sympathize with these violent thieves, because the scene is accompanied by upbeat bluesy rock music. So go Mel! In order to avoid being arrested on the American side of the border where he has a long criminal record, Mel blasts through the fence separating the US and Mexico – a notoriously flimsy divider. So off he goes to El Pueblito prison in Tijuana,

which – guess what – doesn’t offer very good conditions. Mel doesn’t like it because they play annoying Hispanic music all the time and he gets beaten up by other inmates. It’s also beset by corruption and run by bathrobe-clad bigwig Latino criminals.

Mel plays the kind of likeable robber who can be redeemed by The Love of a Good Woman. He soon meets said Good Woman (although El Pueblito is technically a prison, it’s more like a very downmarket holiday camp where families are allowed to wander in and out) and her son, whose rare blood type makes him of interest to the blood group-sharing prison kingpin who happens to need a liver transplant. Mel must protect these innocents (the mother is a drug dealer but never mind that) while trying to avoid the menacing attentions of the bathrobe-clad bigwig Latino criminals and corrupt cops looking for the cash Mel stashed somewhere before his arrest.

Get the Gringo is an attempt to move away from Gibson’s vanity projects of the last few years and get him back to safer Payback, Lethal Weapon territory, where he can showboat as a wise-cracking tough guy whose macho persona hides a sensitive soul. The actor can probably

All Mel breaks loose: Gibson is an American con trying to bust out of a Mexican jail do this sort of role on auto-pilot now, and brings some charisma to the part. There are some entertaining set pieces, particularly when Mel begins to take down his enemies. The action is well handled throughout and the narrative crackles along: at 96 minutes it doesn’t push it. A lively soundtrack also lends some style.

But you will find every revenge cliché in this movie. Gibson wrote the script, which perhaps explains why it is built on all the hackneyed lines you’d expect.

The film exalts in its gratuitous violence, and at times looks like a cheap Mexican rip-off of Tarantino, without the élan. Mel, The Woman He Loves and Innocent Kid’s characters are never given names, to be symbolic, or profound, or something.

Get the Gringo is nasty, sleazy, brutish, sexist and xenophobic, which it generally gets away with thanks to a veneer of charm, snappy lines and a twinkle of the eye. I wonder why they picked Mel Gibson. ∫

OPEN AIR THEATRE

ANCA IONITA

Shakespeare’s Globe in Bucharest

Director: James Dacre Starring: Tobias Beer, Deirdre Mullins, Will Featherstone, Will Mannering, John O'Mahony, Beth Park, Will Oxborrow, Emma Pallant Heredia, Peter Stormare On at: July 12, 13, at 19:30, George Enescu Plaza (in front of the Hilton Hotel), free entrance until full

Bard in Bucharest: Shakespeare’s As You Like It will be performed in George Enescu Plaza

As part of a summer European tour, Shakespeare’s Globe Theatre will bring to Bucharest its version of As You Like It, a production staged in the Elizabethan theatre tradition, as it was performed in Shakespeare’s times.

On an open-air stage erected at George Enescu Plaza, the Globe’s troupe of eight actors will perform the pastoral comedy set in the forest of Arden using very few props, just a backdrop inspired

by Renaissance paintings, lots of music, gentle satire, brilliant dialog, cross-dressing and, last but not least, lots of dramatic passion.

Rosalind, the daughter of a banished duke, falls in love with Orlando at a wrestling match, but her usurping uncle, jealous of her popularity, banishes her from court. Disguised as a boy she seeks out her father and his friends in the Forest of Arden. Here she meets Orlando again and, disguised as a young man, counsels him in the art of love.

The two performances in Bucharest are presented by the Bucharest Centre for Cultural Programs, ArCub, in partnership with Shakespeare International Festival, Shakespeare Foundation, Craiova National Theatre and the British Council. ∫

www.business-review.ro Business Review | July 2 - 8, 2012

14 CITY WHO’S NEWS

CULTURAL EVENTS AGENDA

Business Review welcomes information for Who’s News from readers. Submissions may be edited for length and clarity. Get in touch at simona.bazavan@business-review.ro

Zoltan Brassai 49, is the new general director of Ford Romania, replacing Henrik Nenzen, 66, who is retiring. Nenzen has been working for the American car manufacturer for the past 41 years. He has held various positions in the marketing, sales and service departments of Ford in the USA, Norway, Germany, Russia and most recently Romania where he was appointed general director in 2010. His replacement, Zoltan Brassai, is currently the firm’s director of operations. He has also served as brand manager Ford Europe for class C and D vehicles in Cologne and director of operations for emerging European markets in Budapest.

Florin Petolea 44, will become general manager of Alcatel-Lucent Romania on August 1. He is replacing Raoul Ros, who takes over a new role in the organization, coordinating the activities of the partners and distribution channels of the company in Europe, the Middle East and Africa.

Petolea has over 20 years of experience in telecommunications, having spent nearly his entire career at Alcatel-Lucent in various positions in operations, customer assistance and sales.

Luca Schianchi 40, is the new director of the Procter & Gamble plant in Urlati, where he will lead 300 employees from July 1.

He replaces Luc Viaene, who had led operations at the unit since construction works started. Schianchi joined P&G 16 years ago in Italy, after getting a master’s degree in Mechanical Engineering at the University of Parma. He has held various management positions at P&G, from logistics operations to production operations, in seven countries.

current general director of AllianzTiriac Asigurari, will take up a regional management position with Allianz in Singapore.

Cosmin Tilea 30, has been promoted to senior associate at RTPR Allen & Overy. He joined the business law firm in 2005 and specializes in financing and energy. Tilea has a breadth of experience advising banks and international financial institutions in transactions involving banking and finance structures, municipal loans and public debt, as well as experience in public acquisitions and energy deals. He has been a member of the Bucharest Bar since 2006.

Ice Age 4: Continental Drift Opens July 6 Manny, Diego and Sid explore a totally new world, using an iceberg as a ship, after their continent is set adrift. In this new adventure, they encounter sea creatures and battle pirates, with all kinds of comic adventures ensuing.

Director: Steve Martino, Mike Thurmeier Starring: Ray Romano, Denis Leary, John Leguizamo On at: Movieplex Cinema Plaza, Hollywood Multiplex, Grand Cinema Digiplex, Glendale Studio, Cinema City Cotroceni, Cinema City Sun Plaza, Hollywood Multiplex, CinemaPRO.

FESTIVALS B’estfest July 6-8

Radu Diaconu 28, has been promoted to senior associate at RTPR Allen & Overy. He joined the firm in 2008, specializing in mergers & acquisitions, energy, and financial regulatory work. Diaconu has experience advising a large number of investors, including financial institutions, private equity funds and entrepreneurs, on different types of transactions, including acquisitions, financing and restructuring. He has been a member of the Bucharest Bar since 2007 and has a PhD in international business law.

This year’s B’estfest festival has no fewer than seven different stages on which more than 50 national and international bands will perform for the public by Pasarea Lake, in Tunari, near Bucharest.

Garbage, Pulp, Royksopp, Selah Sue, Caro Emerald, B.U.G. Mafia, The Qemists, Skindred, Milow, Booka Shade and many others will entertain their fans over 72 hours of live music. The event will also feature an open-air cinema with international movies, an amusement park and

the traditional food court.

Sergiu Celibidache Festival May 3-July 7, from 20.00 The Romanian Atheneum

The event celebrates 100 years since the birth of Sergiu Celibidache, while this year is also the UNESCO anniversary of the Romanian conductor. The last week of the festival consists of the following events: July 2 – German Brass Around the World Concert July 3 – Celi’s Friends Chamber Music Orchestra July 4 – Iasi Moldova State Philharmonic July 5 – Violin Recital Ida Haendel July 6 – Romanian Youth Orchestra – Peter Sadlo Percussion July 7 – Closing Concert – Celibidache premiere – Haz de necaz

EXHIBITIONS Glass and painting exhibition July 3, from 18.00 Constantin Brancusi Room, Parliament House Serbian Ratko Lalic and Romanian Mihai Topescu put on an incredible glass and painting exhibition re-interpreting Constantin Brancusi’s art. This event will feature books on the life and philosophy of the iconic Romanian sculptor.

Roxana Dumitru

has been elected CEO of Allianz-Tiriac Asigurari by the administration board.

His appointment comes into force in August, pending legal approval. Over the past 11 years, Vrignaud has held management positions at Allianz Elementar in Vienna. Rangam Bir, the

has been appointed marketing director at Anchor Grup. She has eight years of experience in marketing and retail. Dumitru graduated from the Faculty of Journalism and Communication Sciences and holds a master’s degree in management and marketing. Previously she also worked for Baneasa Developments. In this new position, she will be responsible for developing and implementing the marketing strategy for the company’s local portfolio which includes Bucuresti Mall and Plaza Romania shopping malls, InCity Residences and two office projects, Anchor Plaza and Anchor Plaza Metropol.

ISSN No. 1453 - 729X

FOUNDING EDITOR Bill Avery EDITOR-IN-CHIEF Simona Fodor SENIOR JOURNALIST Otilia Haraga JOURNALISTS Simona Bazavan, Ovidiu Posirca, Oana Vasiliu COPY EDITOR Debbie Stowe COLLABORATORS Anda Sebesi ART DIRECTOR Alexandru Oriean PHOTO EDITOR: Mihai Constantineanu PHOTOGRAPHER Laurentiu Obae LAYOUT Beatrice Gheorghiu

Remi Vrignaud

FILM PREMIERE

BUSINESS AGENDA July 3 10:30 RTC organizes an event to present its development plans at Radisson Blu Hotel.

By invitation only.

erty Offices organizes an event to present the results of a study on the taxation of patents and trademarks in CEE at Grand Cafe Galleron.

By invitation only.

EEL Events organizes the fifth annual SEE Private Equity Forum 2012, which discusses the private equity investment climate in the emerging countries of Southeast Europe at Radisson Blu Hotel. Find out more at http://www.eelevents.co.uk/see_private_equity_2012/

18:00 Walter Tosto organizes an event to present Fecne Nuclear Components at Radisson Blu Hotel.

By invitation only.

July 4 10:30 Andra Musatescu Law & Industrial Prop-

PUBLISHER Anca Ionita EXECUTIVE DIRECTOR George Moise SALES & EVENTS DIRECTOR Oana Molodoi MARKETING MANAGER Ana-Maria Stanca SALES & EVENTS Ana-Maria Nedelcu RESEARCH & SUBSCRIPTION Lili Voineag PRODUCTION Dan Mitroi DISTRIBUTION Eugen Musat

July 10 -11 Euroconvention Conferences organizes the Romania & Bulgaria Healthcare Summit 2012 at Intercontinental Hotel in Bucharest. Find out more at http://www.euroconvention.com/.

PUBLISHER Bloc Notes Media ADDRESS No. 10 Italiana St., 2nd floor, ap. 3 Bucharest, Romania LANDLINE Editorial: 031.040.09.32 Office: 031.040.09.31 EMAILS Editorial: editorial@business-review.ro Sales: sales@business-review.ro Events: events@business-review.ro