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September 18, 2021
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Investment Plan for Europe: EIB supports construction of new Arctic plant in Romania

  • The new plant will produce 2.2 million washing machines per year, generating approximately 1,400 jobs in a less developed region that faces structural change
  • This is the first production unit in Romania and one of the few in Europe that observes ‘Industry 4.0’ standards

 

The European Investment Bank (EIB) is offering a EUR 68 million loan to Arctic, the household appliances manufacturer, to finance the construction of a high-capacity plant centred on the production of washing machines with the help of advanced manufacturing technologies and efficiency ensured by automation. This transaction is guaranteed by the European Fund for Strategic Investments (FEIS), the main pillar of the Investment Plan for Europe. The support given by FEIS will stimulate foreign direct investments in rural areas, to attract new investments and to turn Romania into a centre of production for all of Europe.

After the construction process is finalised, in 2019, the new plant will produce approximately 2.2 million washing machines annually. This will allow Arctic – currently the leader of the Romanian market for household appliances, having a market share of more than 40 percent – to respond to the ever-growing demand on the European market. Arctic is part of the Arcelik Group – the third-largest manufacturer of household appliances in Europe and the seventh-largest in the world.

The project is extremely innovative, allowing for the implementation of the most recent automation processes and the integration of IoT (Internet of Things) applications, including smart machine-tools, interconnected devices, and cooperative robotic technologies. Thanks to the Arctic investment, the region will become a centre of innovation, having the potential to attract further investments.

“This extremely innovative project, supported by the Investment Plan for Europe, will directly create 480 jobs and 900 supplementary employment opportunities at the level of suppliers. The plant will be located in the South-Muntenia region, which is facing structural economic challenges following the closing of steel industry plants and is characterised by a high unemployment rate and a low degree of technological production. For this reason, the investment has great value for the region,” EIB Vice President Andrew McDowell said.

Regional Policy Commissioner Corina Cretu stated: “This project embodies Romanian excellence in what concerns innovation and advanced technologies. The Investment Plan for Europe offers Arctic the necessary financial stimulus to expand beyond local markets and to create high-quality and sustainable jobs in Romania. It is a concrete example of successful industrial modernisation backed by the EU. I congratulate the EIB and Arctic for this agreement.”

“We are pleased to conclude this loan agreement with the European Investment Bank, a partner that has financially supported the Arcelik Group in constructing the new plant in Romania. This investment represents an important step in turning Romania into a centre of excellence for the manufacturing of household appliances. Access to the European Union’s financing institutions is in line with our firm commitment toward Europe, both as an export market and as a base of operation for our production process,” Arcelik CFO Polat Sen (photo L) stated .

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