German luxury appliance manufacturer Miele plans to expand its electronic component factory in Brasov, Romania. The investment is estimated at EUR 10 million, and will be carried out in the next two years.
The investment in the Brasov plant was made many years ago and has started to pay off, said Reinhard Zinkann, one of the company’s owners. “If the factory works well, it’s normal to continue investing, to expand it,” he added.
The German company launched its operations in Romania in 2007. The group’s total investments in Romania have amounted to EUR 30 million so far.
Romania is one of the few markets where the group is present both with its production division, Miele Tehnica in Brasov, and its sales and distribution division, Miele Appliances. The company’s appliance sales in Romania went up by two-thirds in 2015, to over EUR 3.5 million.
Romania is a growing market, and one of the most dynamic at group level, according to Markus Miele, the group’s other owner. He expects to see double-digit growth on Romania’s electric appliances market in the next years as well.
Miele Tehnica, the company that owns the factory in Brasov, reached a turnover of EUR 40.5 million in 2015, up by 18% compared to 2014. The company had a net profit of EUR 2.5 million and 150 employees, according to official data from the Finance Ministry.