Alfred Karcher’s representatives answered ZF’s request for information on the plan to build a plant in Romania saying they were currently discussing on how to boost production capacity, but no decision had been made, yet.
“Germany’s Karcher bought a land plot in Curtea de Arges and wants to build a plant,” Nicolae Diaconu, Curtea de Arges mayor, told ZF.
The German group, which sells 10 million pieces of cleaning equipment per annum, holds a R&D center in Curtea de Arges employing 30 people.
Beside the research activity, the group has a partnership with Electroarges that mainly manufactures Karcher-branded vacuum cleaners.
Romanian production has increased by over 20% in the past year, but Electroarges representatives did not answer ZF’s request for information on the weight of production for Karcher in the company’s overall output.
Neither Karcher, nor Electroarges officials specified how many vacuum cleaners are producer annually in the Curtea de Arges plant hat now employs around 450 people.
Electroarges in 2013 saw its revenue rise by almost 17% to 160 million lei (EUR36 million), while the producers’ profit slid by 10%, to RON11.8 million.
“Despite the challenging economic climate, Electroarges managed to boost revenue by developing the relationship with Karcher Germany and also by further lifting exports for traditional products,” reads a note accompanying the 2013 financial report of the company of Curtea de Arges.
According to the same document, the company’s managing board proposes directing 2013 profit to investments in order to “meet the external beneficiary’s request for enhanced production capacity to assimilate new products”.
(English version by Catalina Apostoiu)