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Gorenje to Develop Company Independently
Jun 1, 2004
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Slovenian-based home appliance maker Gorenje announced it wishes to continue to develop the company on its own and not as part of a larger group, the company's chairman Franjo Bobinac told Slovenian newspaper, Dnevnik, rejecting suggestions of a possible takeover.

According to Mr. Bobinac, Gorenje is sufficiently large enough to benefit from the economies of scale, while it is also sufficiently small enough to adapt quicker than its bigger rivals. According to Mr. Bobinac, all the efforts of the home appliances group are currently directed at independent development and the creation of a respected European brand name. However, he said a decision regarding any takeovers are left to the owners.

The company will pursue the goal of becoming one of the top five European producers of white goods with internal growth and the acquisition of other companies, Mr. Bobinac explained. "We are currently looking at possible targets in Southeastern and Eastern Europe," he said, adding that he was sure that Gorenje's production would, in the next 2 years, expand to at least two other locations.

Refusing to specify where Gorenje intends to open the new production facilities, Mr. Bobinac did report that one of the locations would be located in Serbia-Montenegro. He also said that there would be no job cuts at Gorenje's plant in Velenje.

Gorenje's CEO also pointed out that the group recently opened an office in Hong Kong, which is in charge of providing cheaper raw materials and parts. (Slovenian Business Week, Slovene Press Agency STA)

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