Arctic becomes Europe's largest manufacturer of refrigerators

Arctic inaugurated a new production line at the Gaesti plant in Dambovita County increasing its production capacity with 25%. Hence, the home appliance manufacturer extended its production up to 2.5 million units per year, becoming the largest producer in this field in Europe according to Mediafax. 

The inauguration ceremony was attended by Romania’s Prime Minister Victor Ponta, the Turkish Ambassador, Omur Solendil, the President of Dambovita County Council, Adrian Tutuianu along with other MPs and local authorities. 

The new production line was developed through a EUR24 million investment, partially supported by the Romanian Government. Thus, EUR10.2 million out of the total sum represents a state aid, the remaining amount being assured by the company.

‘This moment marks a new stage in Arctic’s development because it enables us to keep growing. During the last years we have produced at full capacity. Arctic had a consistent positive performance, with an average growth rate of 5% per year.’ Monica Iavorschi, Arctic’s General Manager, said.

The export was actually the main factor of the company’s growth, although Arctic also succeeded to increase its market share here in Romania, now covering 36% of the domestic market. Furthermore, the sales revenue shows a significant improvement increasing five times up to EUR272 million since Arctic was taken over by the Turkish group Arcelik, while the exports revenue grew nine times, Levent Cakyrodlu, the General Manager of Arcelik, explained .

As currently about 85% of Arctic’s production is exported, following this investment, the export share is expected to grow: ‘With this investment the export share will be higher. Arctic became the largest refrigerators factory in Europe. We have already created 195 jobs and we will create up to 572 jobs in five years. The state will recover its investment in less than five years. Since 2002 when we bought Arctic, we have invested EUR108 million in the Gaesti plant.’ Cakyrodlu said.

He also added that the new production line will allow a greater flexibility and they consider adding new products in Arctic’s portfolio provided the growth tendency registered up to this point will be maintained. 

Part of Arcelik group, a major player in Europe’s home appliances industry, Arctic has three important brands in Romania: Arctic, Beko and Grundig. Last year, Arctic reported a EUR1.37 billion in turnover, 24% higher than in 2011, for the current year being anticipated a new growth of 10%.