The new production line will create around 400 new jobs within the next five years, company officials said.
Of the total EUR24 million invested, EUR10.2 million was state aid.
“This marks a new stage in Arctic’s development and allows us to continue our growth. We have been producing at full capacity in recent years. Arctic has had constant positive results and an average growth rate of 5% per year,” said company general manager Monica Iavorschi.
With the new production line, Arctic raises its output by 25%, to 2.5 million units a year. The company makes freezers and refrigerators under the brands Arctic, which is mainly sold on the domestic market, and Beko, which is also exported. The company exports 85% of its output.
“With this new investment, the export ratio will be even higher. Arctic has become the largest refrigerator plant in Europe. We have already created 195 jobs and we will have up to 572 within five years. The state will recover its investment in less than 5 years. Since 2002, when we bought Arctic, we have invested EUR108 million in the plant in Gaesti,” said Arcelik general manager Levent Cakiroglu.
Exports were the main growth factor for Arctic but in Romania, too, the company increased its market share from 31% to 36%.
“The state aid was an encouragement, we would have made the effort for this investment. Since 2002, production capacity has increased from 300,000 to 2.5 million a year. Sales increased five times. Exports increased nine times,” said Cakiroglu.
He also said the new production line makes the plant more flexible and opens the way for the manufacturing of other products as well.
Cakiroglu added the local household appliance market is expected to rise in the next years and Arctic’s turnover is seen up 10% this year.
Arctic had a turnover of RON1.37 billion (EUR30 million) in 2012, 24% higher on the year.