The European Investment Bank (EIB) is lending 68 million euros to Romanian white goods producer Arctic in order to finance the construction of a large-scale washing machine production plant featuring advanced manufacturing technologies and automation efficiency. This transaction has been guaranteed under the European Fund for Strategic Investments (EFSI), which is the central pillar of the Investment Plan for Europe. The EFSI’s support will stimulate greenfield foreign direct investment to attract new investments and transform Romania into a white goods production hub for Europe.
After completion in 2019, the new factory will produce some 2.2 million washing machines a year. This will allow Arctic – currently the market leader in the Romanian white goods market with more than 40 per cent market share – to meet increasing demand in the European market. Founded in 1968 Arctic has since 2002 part of the Arçelik Group – the third largest producer of white goods in Europe and the seventh largest in the world.
“This highly innovative project, supported by the Investment Plan for Europe, will create 480 direct jobs and 900 additional working opportunities at a supplier level,” said EIB vice president Andrew McDowell. “The facility will be located in the South Muntenia region of Romania, which is facing structural economic challenges following steel industry closures and is characterised by high unemployment and a low degree of technology manufacturing. For this reason, the investment has a great value for the region.”
European Commissioner for Regional Policy Corina Creţu, herself Romanian, added: “This project embodies Romanian excellence in terms of innovation and advanced technology. The Investment Plan for Europe provides Arctic the financial boost it needs to expand beyond local markets and create quality, sustainable jobs in Romania. This is a concrete example of successful industrial modernisation, supported by the EU. I congratulate the EIB and Arctic on this great deal.”
“This investment will be a significant step towards making Romania a center of excellence in manufacturing,” said Arçelik CFO Polat Şen. “Having access to the official financing institutions of the European Union aligns with our strong commitment to Europe, both as a market and as a manufacturing base for our products.”
Add Comment