Craiova - Economy

Economy

In the first two decades of the 19th century Craiova is characterized by economical growth, multiplication of its habitants` preoccupations in the areas of trade, commerce, and public services. In comparison with other great urban centers, Craiova is situated as a commercial, administrative and cultural knot of prime order.

During the Tsarist take-over (1828–1834), Craiova goes trough important economical growths. In 1832, there were a number of 595 shops, of which "187 of wood and 398 of stone wall". The city is maintained as the commercial centre of Oltenia; it was exporting to Austria and Turkey cereal, skins, wax, animals, tallow and cervices. As a follow-up of the permanent high demands of export, at Craiova was established, in 1846, the first Romanian society on share holds for cereal transport by ship on the Danube, to Brăila.

Around 1860 in Craiova there were 4633 buildings, of which 3220 were houses, 26 churches, 11 schools, 60 factories - workshops. There were also approximately 90 establishments with an industrial character, of which: 12 wind mills, 3 beer factories, 2 gas and oil factories, 4 tanneries, 2 printings. Statistics show that there was, at Craiova, a percent of 57,7% of the total number of craftsmen from the Dolj County (1088 craftsmen, 687 journeymen and 485 apprentices). Towards the ending of the XIX century, Craiova was a city that had small factories and workshops with chemical products, agricultural machines, graphics art, tanneries, textiles, construction materials, etc. At 26 October 1896 Craiova's power plant starts working (with AEG equipment - Allgemeine Elekticitats Gesellschaft), having an installed power of 310 power horse, and supplying 365 lamps on 39 streets in a network of 30 km (18.64 mi). Craiova was the first city of the country powered up with electricity based on engines with internal combustion.

In 1900, Craiova was holding 43, 1% of the number of the industrial units of Oltenia, having 924 industrial firms (of which 20 establishments were belonging to the big industry, using 1078 workers). In 1925, the number of establishments of the "big industry" was up to 49, and in 1930 the number of workers was of 5530. The bank commerce was affirming as well, at the beginning of the 20th century already existing 6 banks and 2 exchange offices.

In the Interbelic period, the city, situated in an area eminently agricultural, was moving forward with too small steps toward the industrial way, in comparison with other urban areas of the country. The number of those who got close to industry was extremely small.

In 1939, in Craiova were only 7 industrial units with over 100 workers: The cloth factory "Oltenia", "Scrisul Romanesc"("The Romanian Writing"), the macaroni factory "Concordia", the bread and macaroni factory "Barbu Druga", "Semanatoarea", The electrical factory and the bread factory "Traiul". The only industrial branch that had industrial units comparable with similar units of other centers of the country was the industry of graphic art. The two printings "Ramuri" and "Scrisul romanesc" were well known all over the country and abroad.

Starting with the 1960s the city becomes a powerful industrial center; it develops the industry of machine and tools construction, planes, the chemical industry, food industry, easy industry, of construction materials, electro technical, extractive, energetic industry. The Romanian Revolution of 1989 led to important changes in economy, by realizing a free market and by decentralizing the management of all national economic sectors. A value for the property sense was reinstated by liberating the particular initiative and privatization of goods that belonged exclusively to the state. In industry a drop of all capacity production was noticed, determined by the fact that they couldn't anticipate the direction of the impact of change and size of the shocks that followed the modification of the economical-social system. Still, the industry continues to represent the branch of activity with great influence over the city's economy (70%).

During the post-Revolution period, telecommunication services, banking and insurance, management consulting (CDIMM, Romanian-American Center) began expanding. The number of joint ventures and the value of invested capital at county level have increased to large numbers — Dolj County being the first in respect to these aspects. The Automobile Craiova factory, formerly owned by Daewoo and renationalised after Daewoo's bankruptcy, was sold in September 2007 to Ford.

Ford will produce in Romania the B-Max model, a small class mono volume. The aspect of the new model will be somewhere between Ford Fiesta and C-Max, but smaller than the latter. The American manufacturer expects to become the second biggest seller in Romania after Dacia. In 2009, Craiova works delivered 300 Ford Transit Connect units to the market.

Of the city's working population (about 110,000 persons), 38% are employed in industry, 15% in trade and repair services, 10% in transport and storage, 8% in education, 5.7% in the medical field.