Industrial Park, beginnings | Objective Voice of Braila

• the municipal councilors approved in the ordinary meeting of CLM Brăila, on April 23, an agreement in principle so that the company “Glorious Lighting”, owned by the Chinese who bought the former shopping center “Armonia” and built a factory of lighting fixtures, to start steps to create an industrial park • the administrative step is related to the announcement made, recently, by the mayor Marian Dragomir, who has already stated that this company wants to expand to Brăila and create another factory • through this agreement, “Glorious Lighting” can submit the documentation to the Ministry of Development to obtain financial support • if it obtains this title, as a package, Brăila City Hall undertakes to exempt the company that will build the industrial park from taxes and taxes on the land and the buildings in the respective area

Interesting plans of the “Glorious Lighting” company, which built a lighting fixture factory on the site of the former “Armonia” shopping center. As the mayor Marian Dragomir announced, the Chinese want to expand their business in Brăila and build another factory, but everything is part of a plan to build an industrial park in that area. And administrative steps are already being taken in this regard. More precisely, the municipal councilors approved, during the ordinary meeting of April 23, an agreement in principle for the granting of exemptions to Glorious Lighting SRL (provided in art. 20 of Law 186/2013 on the establishment and operation of industrial parks), for obtaining industrial park title.

As stated in the specialized report of this project, on April 17, the company owned by the Chinese requested to obtain this agreement in principle from the municipality. It is a necessary administrative step for this company to benefit from regional state aid to support initial investments. In short, according to the law, the administrator of such an industrial park must obtain the approval of the City Hall before the date on which he wishes to submit the documentation to obtain the title of industrial park. And Glorious Lighting intends to submit these documents to the Ministry of Regional Development and Public Administration.

“In order to grant the industrial park title under the special conditions regulated by the simplified procedure provided for in Law no. 186/2013, it is necessary to comply with the substantive conditions regarding the agreement in principle of the local public administration authority for the establishment of the industrial park in the form of a local council decision. The proposed draft decision aims to support the initial investments made in industrial parks.

(…) It is necessary to draw up a draft decision regarding the agreement in principle of the Municipality of Brăila for Glorious Lighting SRL to benefit from de minimis aid in the form of the fiscal facilities provided for in art. 20 of Law no. 186/2013 on the establishment and operation of industrial parks”, it is further explained in the project report.

Brăila City Hall, willing to exempt the company from taxes and land and building taxes

As explained in the report of the draft decision, this industrial park title gives the administrator and its residents the right to some facilities. Specifically, we are talking about: exemption from paying the fees charged for changing the destination or for removing from the agricultural circuit the land related to the industrial park; exemption from paying the land tax (corresponding to the land related to the industrial park); exemption from paying the tax on buildings (which are part of the infrastructure of the industrial park); exemptions, only with the consent of the local public authorities, from the payment of any taxes due to the local budgets of the administrative-territorial units for the issuance of any town planning certificates, building permits and/or building demolition permits for the lands and buildings of the park infrastructure, which do integral part of the industrial park.

“In Law no. 227/2015 on the Fiscal Code, with subsequent amendments and additions, to art. 456 paragraph (1), letter I), it is specified: “No building tax is due for buildings in industrial parks, scientific and technological parks, as well as those used by business incubators, in compliance with the legislation on state aid”. (…) In art. 464 para. (1), lit. n) it is specified: “There is no tax/land tax due for the lands in industrial parks, scientific and technological parks, as well as those used by business incubators, in compliance with the legislation on state aid”. Only the facilities established by art. 20 para. (1) from Law no. 186/2013 whose cumulative value with the previously granted de minimis aid, in a period of 3 fiscal years, do not exceed the ceiling provided for in art. 2 of Order no. 2,258/February 27, 2018, as follows: «The de minimis aid is granted to unique enterprises located in industrial parks in the form of waivers of budget revenues, within the limit of the equivalent in lei of 300,000 euros for each beneficiary, a limit considered for the last 3 years from the moment of granting».”the report also states.

Big plans from the Chinese in Brăila

In the address issued by “Glorious Lighting” to Brăila City Hall, requesting this agreement in principle, for the initiation of the process of obtaining an industrial park title, document attached to the map of the municipal councilors, the company’s representatives specify some of the future plans. They inform that they want to expand their activity by establishing an Industrial Park on the existing territory, noting that the current property is 191,000 sqm, of which the built area is 32,900 sqm, the rest can be used for an industrial development.

As the local elected officials were informed, the objectives of the industrial park consist of a series of elements: the development of the “Glorious Lighting” company with a new production hall and an investment in a photovoltaic park with a capacity of 1.6 MWh; attracting companies that can be suppliers for the Chinese company in Braila, because they intend to invest in warehouses, and their partners should add production equipment. Also, the company could even offer the production halls for rent.

The company’s representatives claim that the establishment of the park would present some benefits for Brăila: stimulating investments by increasing and diversifying the existing activities on the industrial platform, developing it with access roads, utilities, etc. Attracting other investors; creating new jobs and developing dual education. The horizontal development of the various companies in Brăila that will offer services to companies in the park: construction, transport, hospitality, etc. Increasing the visibility of Brăila in the Romanian business environment.

The company also told the municipality that it is currently in discussions with various electrical component manufacturers, as well as other investors from Asia, who would be interested in investing in Europe. “Glorious Lighting” claims that it wants to start a campaign to promote the future park through the Romanian Agency for Investments and Foreign Trade, Embassies, Chambers of Commerce and Industry, Real Estate Agencies specialized in industrial spaces, etc.

During the regular meeting of CLM Brăila, PNL municipal councilor Petrică Popa intervened to convey that he would have liked the municipality to be the one to build an industrial park and not a private one.

“It is a private initiative that the Brăila Municipality needs, but I would have been happy, as well as my colleagues, for such an industrial park to be built by the municipality. There were many opportunities and probably in the immediate future an industrial park will be created by the municipality”stated Pope.

The draft decision regarding the agreement for obtaining the title of industrial park by this company was unanimously adopted by the members of CLM Brăila.

We remind you that Glorious Lighting SRL came to Brăila in 2017 and purchased the former shopping center “Armonia” for the sum of 6.5 million euros. The Chinese later transformed the building into a lighting factory where they invested 3.5 million euros in the redevelopment and repartitioning of the space, 5 million in equipment and 2 million in components and human capital. The inauguration of the factory took place in May 2019. According to the mayor Marian Dragomir, this meant the creation of 800 new jobs in the municipality.