the city straddles the Cibin River, a tributary of the river Olt.Now the capital of Sibiu County, between 16 and 1849–65 Sibiu was the capital of the Principality of Transylvania.After World War I, when Austria-Hungary was dissolved, Sibiu became part of Romania; the majority of its population was still ethnic German (until 1941) and counted a large Romanian community, as well as a smaller Hungarian one.
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Set in the Cibin Depression, the city is about 20 km from the Făgăraș Mountains, 12 km from the Cibin Mountains, and about 15 km from the Lotru Mountains, which border the depression in its southwestern section.
It is also an important hub for the manufacturing of automotive components and houses factories belonging to Thyssen Krupp Bilstein-Compa, Takata, Continental, and NTN-SNR ball bearings.
Other local industries are machine components, textiles, agro-industry, and electrical components (Siemens).
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During the 18th and 19th centuries, the city became the second- and later the first-most important centre of Transylvanian Romanian ethnics.