The investment in the first plant amounted to EUR15 milion and in the second, to be inaugurated in the fall, to EUR20 million, says Lilia Sedlar, regional president Eastern Europe, a region with 14 countries and more than EUR300 million revenue.
The group bought a 130,000 square meter plot in Curtea de Arges, 43,000 square meters of which used for the construction of the two facilities.
“Kärcher chose Romania to develop manufacturing because it had a history here. We had a partner making vacuum cleaners for us.”
The partner is Electroarges.
Romania is the only Eastern European country where Kärcher has manufacturing operations, because of the skills of the people in Curtea de Arges, the better costs compared with other countries and the good geographic location. It needs infrastructure investments, though, to ensure products reach other markets faster, Lilia Sedlar added.
CER Cleaning Equipment, the operator of the Curtea de Arges plant posted more than RON380 million (EUR77 million) revenue in 2020, an increase of 30% on 2019.
Kärcher products are available in more than 500 offline stores, as well as online. They are available in the Dedeman, Altex, Auchan and Carrefour chains (mainly household products) . The professional Kärcher products are mostly sold via dealers and the group’s own store chain. Kärcher has 11 stores in Romania, seven of which it operates itself and the rest via partners. The latest store opened in Militari Shopping Center in Bucharest, following a EUR80,000 investment.
Kärcher Romania posted EUR23 million sales last year, an increase of 18% on 2019.
The good results encouraged it to invest in its own local building, which will include a services and academic center. The EUR10 milion investment in Pipera, Bucharest, should be completed at the end of 2021 or early in 2022. This is also where the group’s largest store in the country, 600 square meters, will open.
Kärcher plans to make investments in manufacturing, its local headquarters and in retail, and seeks to double revenue by 2025. Its officials expect revenue of the wholesale and retail unit to be flat this year.
(English version by Loredana Fratila-Cristescu)