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Arctic Gets State Aid

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Most readers won’t have heard of the appliance manufacturer Arctic as its a Romanian company that produces mostly refrigeration products we believe, until now.

Arctic (aka Beko) gets state aid to build a factoryIt has been reported that the company has just landed a tidy lump of state aid to the use of of RON 162.5 million (€36.1 million) to build its second plant in Romania, where it will produce washing machines.

The project’s total value amounts to around EUR 105 million, of which 35% represents state aid, reports Ziarul Financiar.

The state investment in the new Arctic factory is hoped to generate some 480 jobs.

This was one of four projects for which state aid was approved in 2016 by Romania it’s reported. The other three companies getting state financing for investments are the car parts producer Robert Bosch, Swiss aluminum components producer Alu Menziken, and Italian car parts producer Pirelli Tyres Romania. This means that all the four projects supported by the state are part of the manufacturing industry.

Arctic is the largest appliance producer in Romania, with a turnover of €376.7 million in 2015.

The company is owned by the Turkish Arcelik Group who are better known in the UK and other areas in the EU as Beko, has a factory in Gaesti, Dambovita county, where it produces about 1.9-2 million refrigerators and freezers.

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