Gorenje CEO: We might build a plant in Romania

Home Appliances / Delia Oniga Franjo Bobinac, chairman and CEO of the Slovenian home appliances group Gorenje, has stated that the group intends to open a few plants outside Slovenia, with Romania being considered as an option, alongside Russia, Ukraine and Turkey. "For us, Romania is one of the most rapidly growing countries. Almost all our products in Romania are sold under the Gorenje brand name, which means that the brand retains a quite high position. We are almost certain to open a few new plants outside Slovenia within the next few years. It is very difficult to say whether they will be in Romania, Russia, Ukraine or Turkey, but at present we are keeping our options open," stated Franjo Bobinac, chairman and CEO of Gorenje. Gorenje Romania accounts for around 2% of the group's white goods sales, given that the company does not have any local production facilities. "This percentage is expected to rise within the next few years, as Romania is growing at a slightly faster rate than the other countries," added Bobinac, He predicts sales of 20 million euros for 2007, after the company posted a business worth 17.5 million euros last year. Out of the 17.5 million-euro sales registered last year, 15 million euros came from the sale of white goods, and 2.5 million euros from other products from Gorenje's portfolio, such as boilers, radiators and furniture. Bobinac believes entry into the European Union will not bring about changes on the Romanian market. "The acknowledgment of the country and its contact with other EU member countries can only act as a facilitator for individuals, countries and companies. It is not something that will automatically lead to a better standard of living, but it will help improve performance," said Bobinac. He added that the eventual introduction of the single currency would result in attracting a great deal of interest from foreign investors, as Romania is a country with a very high potential, because it is well placed geographically, close to the Balkans, and located near other Eastern countries.

Ziarul Financiar/May 23, 2007