The European Investment Bank (EIB) is granting a EUR 68 million loan to the Arctic appliance manufacturer to finance the construction of a high-capacity washing plant in Romania.
This transaction is guaranteed by the European Investment Fund (ESF), the central pillar of the Investment Plan for Europe.
After completion of the construction process, in 2019, the new plant will produce annually approximately 2.2 million washing machines. This will allow Arctic – currently the market leader in home electronics products, with a market share of over 40% – to meet the growing demand on the European market.
Arctic is part of the Arçelik Group – the third largest manufacturer of home appliance in Europe and the seventh in the world.
“This highly innovative project, supported by the Investment Plan for Europe, will create 480 direct jobs and 900 additional supplier-level employment opportunities. The factory will be located in the region South-Muntenia, which faces structural economic challenges after the closure of factories in the steel industry and is characterized by a high unemployment rate and a low level of technological production. For this reason, investment is of great value to the region, ” EIB vice president Andrew McDowell said.
Arctic is the leader in the home appliance market in Romania and owns the largest production plant in mainland Europe, with Gaesti’s unit producing over 31 million freezers so far. Arctic is also one of the most important companies in Romania, with over 3,600 employees, including subcontractors, and a turnover of RON 2.2 billion in 2017.
“We are pleased to conclude this loan agreement with the European Investment Bank, a partner that financially supported the Arçelik Group in the construction of the new plant in Romania. This investment is an important step in turning Romania into a center of excellence in the production of home appliances. Access to European Union funding institutions is in line with our strong commitment to Europe, both as a marketplace and as a basis for operations for our production process, “Arçelik’s financial director Polat Şen states.
Currently, 87% of Arctic’s total production is exported to more than 80 countries. In 2017, Arctic started construction work for a new washing machine factory, which will be located in Ulmi, Dâmboviţa County. The new investment is a Greenfield type and will be the first production unit in the Arçelik group built to the industry digital 4.0 industry standard.
The plant will integrate state-of-the-art technologies, such as the wireless communication of production lines with those in other Arcelic Group countries, as well as intelligent machines. On the local market, Arctic has strengthened its leadership position in 2016 and 2017, both for the Arctic brand and for Beko and Grundig, offering products and services tailored to consumers’ needs and lifestyles.