The top three exporters shipped EUR530 million to EUR600 million worth of products abroad, according to ZF estimates. Six companies are among the top 500 exporters in Romania. Five are among the top 200.
Gaesti-based manufacturer Arctic held by Turkey’s Arcelik group remained the leading home appliances exporter in Romania last year, ranking 33rd among overall exporters, the same as in 2015, according to the National Statistics Institute data.
The plant in Gaesti, Dambovita County (southern Romania) is one of the oldest home appliances manufacturing facilities in Romania, which started 45 years ago. The ‘Made in Gaesti’ products reach 60 countries every year. Arctic exported 1.2 billion lei (EUR270 million) worth of products in 2015, according to the latest official data available, an increase of 13.4% on 2014.
Exports were slower to progress than revenue, which went up almost 18% to about RON1.8 billion. Arctic’s revenue includes both the output of the plant in Gaesti and the local sales of products made by its parent group in plants outside Romania. The Gaesti plant only makes refrigerators and freezers but Arcelik also sells other types of home appliances branded as Beko and Arctic, as well Grundig electronics on the local market.
Arctic’s Gaesti plant has a production capacity of 2.6 million units, but is not running at capacity, according to the latest available data. Its peak capacity makes it the biggest production facility in its industry in Continental Europe and the second largest on the whole continent, after Arcelik’s Eskisehir plant.
Arctic plans to begin construction of a new plant in Ulmi, Dambovita County, where it will make washing machines. The RON471 million project will use about RON162.5 million state aid. The investment in a washing machine plant is the first in Romania in a long while, considering local plants make refrigerators, vacuum cleaners, espresso machines, cookers and oral hygiene products. Romania used to make Albalux washing machines but the brand has long disappeared from the market.
Romania is not a major home appliances manufacturer and exporter, as its companies’ revenue only stands at less than RON4.5 billion a year, according to ZF estimates. The market is developing, however and exports generate more than 80% to 85% of the revenue.
Six companies in this industry are among the top 500 exporters, five of which make finished products and one components. These companies invest in development, which shows in their position in the exporter ranking, where they all did better in 2016 than in 2015.
De’Longhi and Philips are close to the top of the ranking. De’Longhi started manufacturing espresso machines in Romania in March 2013, replacing Nokia at the Jucu plant. Its revenue constantly increased almost fourfold between 2013 and 2015. It posted RON505 million revenue in 2015, up 57% on the previous year, according to the latest data available. Most of production is exported, so De’Longhi Romania became 56th largest exporter in the country last year, climbing 20 places.
Philips Orastie, too, climbed from 77th to 63rd in the overall exporter ranking, according to the National Statistics Institute data. Philips’ plant in Orastie, Hunedoara County (central Romania) ended 2015 with RON506 million revenue, up less than 1% on 2014. The business is five times bigger than in 2009, when Philips bought the plant. Launched about 17 years ago, the plant now makes Philips espresso machines and Sonicare oral hygiene products.
Other exporters among the largest are Electrolux, which owns a cooker plant in Satu Mare, Miele, which makes components in Brasov, and Electroarges. Electroarges is the only top Romanian-held company. It makes vacuum cleaners and one of its major customers is Germany’s Kaercher. Kaercher also completed its own vacuum cleaner plant in Curtea de Arges, the same city Electroarges operates in, and got state aid for its RON90 million investment. The plant is already operational and the company expects RON180 million to RON200 million revenue this year, which could put it among the largest exporters in Romania.
(English version by Loredana Fratila-Cristescu)