Wednesday, June 23, 2010

Arcelik to build the Middle East’s largest home appliances factory in Egypt

Arcelik AS, Turkey’s biggest home appliances maker of fridges and washing machines, stated to the Istanbul Stock Exchange that it is planning to build the Middle East’s largest home appliances factory in Egypt.

Analysis: Arcelik views Egypt as an attractive market, given its favourable demographics and young population. Moreover, the country’s location and free trade agreements are helping to attract manufacturers / exporters, in addition to Egypt’s lower manufacturing costs. If Arcilek targets the local market, which we assume, this will pose stronger competition to local player including Olympic Group.
No further details were disclosed regarding the timeframe or the investment cost.