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IFC Invests in Slovenian Appliance Manufacturer Gorenje to Accelerate Development, Preserve Jobs in the Region


In Belgrade:
Slobodan Brkic
Phone: +381 11 3023 750
E-mail:
SBrkic@ifc.org
 
In London:
Name: Carmen Powell

Phone: +44 207 286 5439
E-mail:
cpowell@ifc.org


Velenje, Slovenia, June 7, 2010—IFC, a member of the World Bank Group, is investing up to €25 million in equity in Gorenje, the largest household appliance manufacturer in Southeast Europe, to support the company’s restructuring, accelerate research and development of environmental friendly products and services, and preserve jobs in the region.

IFC also is providing a €50 million loan to Gorenje and will mobilize up to €100 million through syndications.  The investment package will help Gorenje update its operations, which should result in better product competitiveness, enhanced high-end product range, and improved labor productivity.  

“IFC’s participation as an equity partner will support Gorenje’s stable medium- and long-term business growth,” said Franjo Bobinac, President and CEO of Gorenje.  “The acquired resources will be used for acquisitions, as well as to restructure existing activities and accelerate development of new activities.”  

Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services, said, “IFC investment will support Gorenje’s expansion and modernization of its operations following the economic crisis.  We strongly support the company’s growing focus on ecology and improved waste-management solutions.”


Additionally, IFC will provide advisory services to improve operational efficiency and will assist the company in expanding its energy efficiency efforts.  Gorenje’s expansion and upgrading will allow the transfer of first-class production methods and manufacturing practices through linkages with networks of local suppliers.  


The company’s main factories are located in Velenje in Slovenia, Valjevo and Stara Pazova in Serbia, and Mariánské Údolí in the Czech Republic.


About IFC

IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org.

About Gorenje

Gorenje is the largest manufacturer of home products in Southeast Europe and among the top eight European providers of household appliances. Operating in 70 countries worldwide, the company sells over three million units per year. With 93 percent share of exports, Gorenje is the most internationally oriented Slovenian company. In past years, the company has been strengthening its activities in the segments of environmental protection, energy management, and services. It has been publicly listed on the Ljubljana Stock Exchange since November 2000. For more information, visit
www.gorenje.com.