Gorenje Loan Will Pay to Move Manufacturing to Slovenia
Oct 9, 2013
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Appliance maker Gorenje, based in Velenje, Slovenia, secured a EUR 30 million loan to help pay for the transfer of washing machine, clothes dryer, and dishwasher manufacturing from Sweden to Velenje. The funds will also be used to improve the average maturity of financing sources.
The note was signed in late September by Gorenje President and CEO Franjo Bobinac, the management board president of NLB Janko Medja, and the management board president of SID banka Sibil Svilan.
Gorenje said the loan, repayable in 5 years, will not increase Gorenje's overall debt. NLB and SID banka will each contribute half of the total loan amount.
"This new long-term loan will strengthen the Gorenje Group's financial stability, which is especially important in a time of harsh conditions in the markets and a time of restructuring which is currently under way at the Group and includes strategic shifts of manufacturing operations," Bobinac said.
Gorenje Group acquired Swedish appliance maker Asko in 2010 and is relocating all Asko manufacturing operations to Slovenia. Asko research and development, brand management, and marketing operations will remain in Vara, Sweden.
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