Internal restructuring
Centru; Covasna;
Location of affected unit(s)
Sfantul Gheorghe (Covasna county, Centru region)
Manufacture Of Computer, Electrical Electronic And Optical Products
Manufacture Of Electrical Equipment
27 - Manufacture of electrical equipment

840 jobs
Number of planned job losses
Job loss
Announcement Date
1 April 2005
Employment effect (start)
16 May 2005
Foreseen end date
2 November 2005


End of March 2005, the management of IAME Group in Sfântul Gheorghe (Covasna county, Centru region) initiated bankruptcy procedures, as a result of insolvency. The explanation at the time was that competition on the electric car engine market was too high given the emergence of 50% cheaper Chinese products. The manager feared that all the 1,000 employees could be made redundant.

Starting May 2005, over 840 of the groupÂ’s employees were made redundant.

In November, the trade union leader announced that the start of company bankruptcy procedures has been delayed. He declared that by all indications the factory will be saved, after the CreditorsÂ’ Commission was set up on 28 October and its members withdrew their claim to declare the company bankrupt and assigned the company management to draw up a restructuring programme.

Established in 1973, IAME manufactures electric engines, electric and household appliances (grinding machines, saws, pumps, hydrophores).



Eurofound (2005), IAME Group, Internal restructuring in Romania, factsheet number 62679, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/62679.