The European Investment Bank (EIB) is lending EUR 68 million to white goods producer Arctic to finance the construction in Romania of a large-scale washing machine production plant featuring advanced manufacturing technologies and automation efficiency. This transaction is guaranteed by the European Fund for Strategic Investments (EFSI), which is the central pillar of the Investment Plan for Europe. The EFSI 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% market share – to meet increasing demand in the European market. Arctic is part of the Arçelik Group – the third largest producer of white goods in Europe and the seventh largest in the world.
The project is highly innovative, enabling the implementation of the latest automation processes and the integration of Internet of Things applications, including intelligent machines, inter connected devices and cooperative robotics technologies. Thanks to Arctic’s investment, the region will become an innovation centre with the potential to attract further investments.
“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. The facility will be located in the South-Muntenia region, which is facing structural economic challenges following steel industry closures and is characterized by high unemployment and a low degree of technology manufacturing. For this reason, the investment has a great value for the region,” EIB Vice President Andrew McDowell stated.
In her turn, Commissioner for Regional policy Corina Creţu said: “This project embodies Romanian excellence in terms of innovation and advanced technology. The Investment Plan for Europe is giving 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.”
“We are pleased to enter into this lending arrangement with European Investment Bank, who has been a supportive financial partner of Arçelik, for the construction of our new factory in Romania. This investment will be a significant step towards making Romania a center of excellence in manufacturing. 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,” Arçelik CFO Polat Şen added.
The Investment Plan for Europe (the Juncker Plan) is one of the EU’s key actions to boost investment in Europe, thereby creating jobs and fostering growth. To this end, smarter use will be made of new and existing financial resources.
In 2017, Arctic has started construction works for a new washing machine factory, in Ulmi, Dambovita. The new project is a Greenfield investment and will be the first production unit in Arçelik group built according to Industry 4.0 digital concept. The factory will integrate top notch technologies and wireless communication of the production lines with those in other countries part of the Arçelik group, and intelligent machines. On the local market, Arctic has consolidated its leadership position in 2016 and 2017, for its Arctic, Beko and Grundig brands, by offering products and services adapted to the needs and lifestyle of its consumers.