Electrolux will increase capacity and launch production of refrigerators. They company just borrowed money from the European Investment Bank for a project worth EUR 450m. Majority of these funds will come to Poland.
Last week, the European Investment Bank borrowed EUR 220m to Electrolux.
“I can confirm our financing arrangement of EUR 220m but we do not disclose details about our investment plans for competitive reasons”, Anders Edholm, Electrolux spokesman said.
The bank reveals some details. The loan is needed for investments worth EUR 450m. Out of the money reached from the bank, EUR 14.9m will go to Hungary, the same amount to Romania, EUR 40m to Sweden, and – watch out! – EUR 150m to Poland. Each time, the same amount will be additionally provided by the company. That’s why it is certain that it will spend EUR 300m in Poland.
“This is a huge amount for the white goods sector. I can’t imagine how they would spend this funds”, a representative of rival company said.
BSH has so far spent EUR 175 in Poland while Indesit will have invested EUR 240m when its two new plants in Radomsko are ready.
“If Electrolux invests another EUR 300m in Poland, it will become the biggest foreign investor in the white goods sector in the last five years”, Pawel Wojciechowski, the CEO of the Polish investment agency PAIIZ said.
According to EIB, the investments will include research and development of products, increasing capacity and upgrading plants in Poland, Romania and Hungary.

Source: Puls Biznesu, 16.06.2008

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