Electrolux sees 50% growth five months into 2004

Swedish home appliances producer Electrolux logged 50% higher turnover in Romania in the first five months of this year.

The growth was largely due to the high output volume of the cooker factory that the Swedes hold in Satu Mare and to the sales of certain product categories from sectors in which the company was not operating last year.

“The 50% growth in output volume was achieved due to the increase in our production capacity, to the 11% labour productivity improvement, as well as to the creation of more than 300 jobs,” stated Lucian Anghelescu, chief executive of Electrolux’s factory in Satu Mare. Company officials say the sales volume rose 38% in the first quarter this year compared with the first quarter of 2003, as sales on the domestic market went up 32% and exports increased 41%.

Last year, Electrolux saw its consolidated turnover derived from its Romanian operations (production and sales) increase 80% to 105 million euros. If the progress made during the first few months is maintained throughout the entire year, the Swedish producer will total revenues of more than 150 million euros in Romania.

The Swedish group entered the Romanian market at the end of 1995, when it established its sales division in Bucharest. In December 1997, Electrolux became the majority shareholder of Satu Mare-based Samus SA, once it bought the controlling interests (97%) in that company. Electrolux has so far invested 15 million euros in the cooker factory in Satu Mare, especially in boosting its production capacity, environmental protection measures and new product development.

Electrolux is not the only foreign group that is running production operations in Romania. Local refrigerator maker Arctic, which was acquired by Turkey’s Arcelik Group, in its turn posted 80% higher turnover last year and is expected to see turnover reach up to 140 million euros this year, according to its officials. Arctic’s production capacity now reaches 750,000 pieces of refrigeration equipment a year, with almost two thirds of its output exported. Other major international players on the home appliances market, such as Whirlpool, Bosch-Siemens or Merloni are also operating in Romania, but only carry out sales operations.
ionut.bonoiu@zf.ro