Bosch signed the contract over the Jucu land

The representatives of Bosch, those of the Cluj County Council together with the representatives of the Tetarom Society have signed a contract allowing the building of a factory for auto parts in the Jucu industrial park over a surface of 21 hectares.

According to the president of the Cluj County Council, Alin Tișe, the contract was signed in a private setting, at a notary’s office, notes RRA correspondent, Claudiu Pădurean.

The contract was signed for a period of 99 years, the maximum term stipulated by the Civil Code.

If Bosch moved out before the end of the term, they would have to make a compensatory payment to the authorities in Cluj which would be the equivalent of the royalty fee for two years, namely 0.1 Euros per square metre per annum.

The German company has the right to buy the land that the factory will be built on for a price which is to be established by a certified appraiser appointed by the County Council and approved by Bosch.

The Bosch group is about to invest 77 million Euros in Jucu, an investment which will eventually lead to the creation of 3,000 new jobs.

Alin Tişe has stated that he decided to include a cost recovery clause in case Bosch should leave before the consummation of the contract, in order to avoid situations such as the one generated by the departure of Nokia.

Nokia closed the Jucu factory

The Finnish group Nokia began the production of mobile phones at its factory in Jucu in February, 2008, following an investment of 60 million Euros.

Only three years after the opening, the factory furloughed a small percentage of its employees due to the economic crisis and to the drop in production orders.

At the end of September, 2011, Nokia managers decided to shut down the Jucu factory, as part of an efficiency improvement and cost reduction plan.

The company had unpaid debts of up to $10 million uncovered following an inspection of the National Agency for Fiscal Administration.

Dorel Pojar, the mayor of the Jucu commune, stated that closing the Nokia factory affected the local budget, as the commune used to cash “a few million RON a year in taxes”.

If the Juncu administration’s total revenue rose to RON 2.6 million in 2006, when Nokia opened its cell phone assembly line in 2008, they reached RON 6.9 million and RON 8.4 million in 2009.

The decision to close the factory left 2,200 people unemployed.

According to a report published by the National Agency for Employment ( ANOFM), at the end of August, 2011, Cluj County registered an unemployment rate of 3.41%, i.e. over 11,000 unemployed citizens.

This figure places Cluj among the counties with the lowest unemployment rates.