Turkish-based appliance producer, Arcelik, announced it plans to establish a production plant with an annual output of 850,000 washing machines. The expansion is the result of a 50 million euro (approx. U.S. $62.1 million) investment in Russia. In a statement, Arcelik reported their determination to invest in a new production establishment.
The reasons for investing in Russia include the size of the country's market, its growth potential, competitive circumstances, geographical closeness, and low penetration.
Arcelik, who hopes to turnover 100 million euros (approx. $124.2 million), will continue exporting refrigerators and ovens. It said it aims to gain more market experience with the help of Russian manufacturers, well known for their growth breadth and potential in the appliance sector. The durable consumption market in Russia, of which appliances account for 40 percent, reached $6 billion this year. (Economy News Services)
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