Electrolux Eyes Turkey for Production Investment
Apr 28, 2005
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Swedish household appliance producer Electrolux is looking into opportunities for production investments in Turkey, according to the head of its Turkey operations.
Electrolux Turkey General Manager Nevio Pollesel said the company is hoping to make an announcement shortly. "The only shortcoming in Turkey is a railroad," he said, adding that railroads were essential in carrying sizeable goods such as refrigerators.
"We are discussing our plan with a transport company. It's essential to reach Turkey from Europe economically by railroad," Mr. Pollesel was quoted as saying by the Anatolia news agency. He was speaking at a press meeting in Istanbul.
Earlier this month, Electrolux said it might close two plants and scale back two others to cut costs, after posting a 27-percent fall in first-quarter profit.
The company, which makes refrigerators and washing machines under the AEG, Zanussi, and Frigidaire brands, has already begun moving factories to low-wage countries in the face of intense competition and rising raw material costs.
The factories under threat of closure are in Fuenmayor, Spain, and Parabiago, Italy.
Electrolux also announced that it will launch Electrolux-AEG branded goods in Turkey in May, after having acquired and invested some 70 million euros (approx. U.S. $90.8 million) on the AEG brand.
Mr. Pollesel said the dual-brand products will be offered for to around 1,000 AEG retailers across the country. He said Electrolux would make further investment in the brand name in the coming years to make it stronger.
"Dual branding is part of our global strategy," Mr. Pollesel said, pointing to other localized brands such as Arthur Martin-Electrolux and Rex-Electrolux. (Turkish Daily News)
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