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.
“Today we have no plans to add any factories to our Polish manufacturing footprint”, Anders Edholm believed.
But Electrolux will soon build two new plants next to its facilities in Swidnica and Zarow.
„In Zarow, the company will invest PLN 40m (EUR 11.8m) in a new plant employing 504 people. In Swidnica, it will invest PLN 74m and create 300 new jobs”, Miroslaw Greber, the CEO of Walbrzych special economic zone said.
In the same zone, in Olawa, Electrolux has a plant producing washing machines. In Katowice special economic zone, in Siewierz, it produces tumble dryers.
“We don’t have any new project from this company”, Andrzej Pasek, KSSE deputy CEO said.
“Electrolux’s representatives have not mentioned any new investment in Olawa”, Miroslaw Greber added.
New plants may appear somewhere else and decisions where to build them may be made later.
Electrolux is implementing its five-year plant ending in 2009 aimed at shifting half of its production to Eastern Europe and Asia. It has already closed eight out of 30 plants in Western Europe. It has recently said it would move 750 jobs in its Italian plants producing refrigerators. And this is what it may produce in Poland.
“They don’t have it in Poland”, a rival said.
(PLN 1 = EUR 0.295)