Timișoara - Economy

Economy

Timișoara has been an important economic center since the 18th century when the Habsburg administration was installed. Due to Austrian colonization, ethnic and religious diversity and innovative laws, the economy began to develop. The technicians and craftsmen that settled in the city established guilds and helped develop the city's economy. Notably, in 1717, Timișoara became host to the region's first beer factory.

During the Industrial Revolution, numerous modern innovations were introduced. It was the first city in the monarchy with street illumination, and the first city on mainland Europe illuminated by electric light. The Bega river was also channelled during this time. It was the first navigable canal on current Romanian territory. This way, Timișoara had contact with Europe, and even with the rest of the world through the Black Sea, leading to the local development of commercialism.

In the 19th century, the railway system of the Hungarian Kingdom reached Timișoara. Timișoara was the first city in the country with international routes economic boom as the amount of foreign investment, especially in high-tech sectors, has risen. In terms of living standards, Timișoara ranks fourth nationwide. In an article in late 2005, French magazine L'Expansion called Timișoara Romania's economic showcase, and referred to the increased number of foreign investments as a "second revolution".

Apart from domestic local investment, there has been significant foreign investment from the European Union, particularly from Germany and Italy. Continental AG has produced tires since opening a plant in 2000. The Linde Group produces technical gases, and a part of the wiring moulds for BMW and Audi vehicles are produced by the company Dräxlmaier Group locally. Also, Swiss company FM Logistic, already present in Timiș County for Nestlé, P&G and in Bucharest for Cora, L'Oréal, Sanofi Aventis and Yves Rocher, and for companies like PROFI Rom Foods, BIC, Kraft Foods or SCA Packaging - offering them domestic transport services and international transport services for Bricostore, Arctic, Danone, Unilever or Contitech, the growth of FM Logistic in Romania and in Dudești through its 1st own warehouse in Romania (Dudeștii Noi gives FM the opportunity). Nestlé produces waffles here.

The USA company Flextronics maintains a workplace in the west of the city for the production of mobile telephony and government inspection department devices. In 2009, the company laid off 640 workers. The American company Procter & Gamble manufactures washing and cleaning agents in Timișoara. Smithfield Foods - the world's largest pork processor and hog producer - has two subsidiaries in Timișoara and Timiș County: Smithfield Ferme and Smithfield Prod.

Like most of Romania, Timișoara experienced economic slowdown in 2009, due to the global economic downturn.