Gebauer & Griller - strong Austrian investment into the economy of Republic of Moldova

In 2013, Austrian company Gebauer & Griller put into operation the factory GG Cables&Wires EE in Balti, which specializes in producing industrial electric cables. The company had confidently followed the steps of its client Draexlmaier Automotive that started to activate in the Free Economic Zone from Balti in 2007. The company started to work on Moldova’s market in 2014 with an initial investment of approximately 20 mln Euro and a fabrication capacity of 1.6 mil km of cable per year. This way, it implemented new quality standards into the economy of this country and contributed to the creation of a new product with a high added value.

Gebauer & Griller, with central headquarters in Austria, has been operating on the international market of industrial cables for 70 years, thus being one of the biggest producers of cables and wires made of copper, aluminum and steel, which are used in the industry of automotives, electric trains and elevators. Gebauer & Griller is one of the most important players at the international level in the electric cables industry, with an annual turnover of 350 mln. It opened companies in Austria, the Czech Republic, Slovakia, India and Mexico.

Gebauer & Griller was encouraged to start activating in the Republic of Moldova first of all by the presence of the German company Draexlmaier Automotive in the country that specializes in producing cables, electric and electronic components for the board systems of cars, with which the company has been collaborating for a long time.

The geographical position of the country was the second key factor that influenced Gebauer & Griller to invest in the Republic of Moldova. The relatively short distance from Austria, as well as the fact that it neighbors with Romania, where other clients of the company Gebauer & Griller are, played an important role in taking this decision. The company was also attracted by the advantages of ZEL Balti, where production and transportation costs are reduced. Last but not the least, the human potential was also an important aspect.

The General Director of GG Cables&Wires EE, Vasile Boangiu, says that the decision to invest in Moldova was based upon careful considerations of the expenses that had to be made, an analysis of the business environment and of the potential risks. The Director said, ”Nobody invests only for the sake of being in one country or another. Detailed calculations have been made, and as a result we decided that it makes sense to invest in Moldova, and we did it without any hesitation”.

One year after the opening of the company, which has a surface of 10 thousand square meters, its production capacity has reached about 75% of its potential, which means that it produces 1.6 mln km of cables per year.  In 2014, the company registered a sales volume of electric cables of about 50 mln Euro. The raw material is imported from in Austria, Turkey and Romania, and the end products go to the two Draexlmaier factories from Balti as well as to the factory from Pitesti, Romania. In the future, it will be delivered to other clients from Moldova or neighboring countries as well.

The training period for employees lasts from six months to one year. Given the fact that the equipment is sophisticated, they will have to study for a longer period of time, before handling the machines. Due to the fact that much money is invested in the technological equipment, it works 24/24 five days a week.

The investor is pleased with the accomplishments made in Moldova, because, according to him, ”there is a big advantage”. Vasile Boangiu who considers that the investments of Gebauer & Griller are safe in Republic of Moldova, stated that

”Believe it or not, people represent this advantage, namely those people who are very kind, have a responsible attitude towards their jobs and are eager to learn. In a successful business, the people and the team are what essentially matters. There are difficulties in every country where investors go, but if you have a team you can count on, you can overcome any obstacle”.


 

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