How Ungheni turned Paulownia wood into a regional economic engine

The Furniture Cluster brings together raw material suppliers, furniture manufacturers and economic agents.

Created in 2022, the Furniture Cluster has gradually consolidated. Earlier, entrepreneur Florin Popov, planted the first 40 hectares of Paulownia - a type of tree native to Asia, known for its fast growth and high-quality wood. Initially, the trees were intended for export, but later the entrepreneur decided to use the raw material in Moldova. The wood was sold to furniture manufacturers, who turned it into armchairs, tables, wardrobes and other essential pieces for everyday comfort. 

Also in 2022, the Furniture Cluster received financial support worth €100,000 from the programme "EU4Moldova: Focal Regions", funded by the EU and implemented by UNDP and UNICEF. The money has been invested in the purchase of equipment for furniture production workshops, training and mentoring for entrepreneurs.

The Furniture Cluster had a great impact on the economic development of the Ungheni region. 17 new jobs were created and labour productivity increased by 10%. In the production of furniture pieces, advanced digitalization techniques have been adopted to reduce the use of natural products for a greener economy.

At the same time, the Ungheni Furniture Cluster has established successful partnerships and collaborations with clusters in Romania. 

Each leu invested by cluster members generates 9 lei of income, an excellent indicator for business productivity. Revenues from furniture sales increased by 14%. 

Currently, the Ungheni Furniture Cluster produces, sells and exports furniture to both the national and European markets.

"Where there are many, there is strength. We want to strengthen this cluster with new members, new technological investments, so that we remain a competitive leader on the national and European markets," said Alexandru Covali, manager of the Furniture cluster. 

In the future, cluster members aim to invest in cutting-edge technologies, expand into international markets and implement sustainable practices to protect the environment.