German group Kärcher invests EUR 25 mln to build second plant in RO

German group Kärcher, which owns a vacuum cleaner factory in Curtea de Arges, southern Romania, announced plans to invest EUR 25 million in a second vacuum cleaner plant, Ziarul Financiar reported.

"We want to locate most of the production in Romania," says Ion Bican, managing director of CER Cleaning Equipment, the company that operates Kärcher’s local plant.

In 2017, the German group bought a building in Curtea de Arges, where it already has a factory, to develop a new production facility.

Initially it planned to refurbish the building, but now it decided to demolish it and rebuild a new vacuum cleaner production facility in line with its bigger capacity in mind.

"It will be a major project, with a total investment of about EUR 25 million, money that will go into the acquisition of technology, equipment for the new range of products and, of course, in the building," says Bican.

The first factory of the German group posted EUR 60 mln turnover in 2018, to rise by 5%-6% in 2019.

Kärcher also has a long-standing partnership with Romanian company Electroarges, which has been assembling vacuum cleaners for the German group for many years.

(Photo: Pixabay)