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25. 01. 12. - 15:00

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25. 01. 12. - 15:00

De'Longhi opens plant in Romania

Romanian Times

Home appliances producer De’Longhi will buy the former Nokia plant in Cluj county, northwestern Romania, after the mobile phone producer shut it down at the end of last year.

The transaction is expected to be completed in the first quarter of this year.

Local authorities in Cluj said the investment was valued at 30 million Euros and at least 600 people will get a job at the new production facility.

A joint statement of the two companies says today (Weds) that De'Longhi wants to integrate the production facility into its development strategy.

De'Longhi plans to make the facility a key part of its development strategy, aimed at supporting its fast-growing international presence. The facility will also enable De'Longhi to adapt and diversify its production network so as to partly rebalance its manufacturing structure from the Far East to Europe, where De'Longhi already operates a plant in Italy.

The transaction will be analysed by the Competition Council.

De'Longhi produces and sells home appliances, under De'Longhi and Kenwood brands. The group is listed on the Milan stock exchange.

Nokia closed down the 60 million Euro plant in November last year, after it had opened it in Jucu, Romania, back in 2008. A number of 2,200 employees have been laid off. The closure, announced for the end of the year, had been brought forward by one month, due to a lack of orders.

Nokia announced it would shut down the plant in Jucu, Cluj, because of changes in the phone production market, as people were starting to buy smart-phones instead of ordinary mobile phones, like those produced at Jucu, officials explained at the time.

Production at the plant in Jucu would continue until the end of 2011. In March 2012, the employees will be sent into technical unemployment.

Nokia, whose subsidiary in Romania was the country's second largest exporter, relocated production from the plant in Bochum (Germany) to Jucu (Romania) in 2008 and announced investments of 60 million Euros.

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