Bloomberg News

Gorenje Starts Output in Serbia to Expand Eastern European Sales

October 10, 2011

Oct. 10 (Bloomberg) -- Gorenje Group d.d. started production of washing machines at its plant in Serbia as Slovenia’s biggest appliance maker seeks to increase sales in eastern Europe.

Gorenje started producing plastic sinks and washing machines in the eastern Serbian town of Zajecar in an investment worth 2.9 million euros ($4 million) that will be sold to consumers in Serbia, Ukraine, Russia and other markets in the region, the Velenje, Slovenia-based company said in a statement to the Ljubljana stock exchange today.

The plant in Serbia will allow Gorenje to benefit from a customs agreement signed by Serbia with Russia and some other countries of eastern Europe, Gorenje said.

Gorenje, which is Slovenia’s second-biggest exporter, operates three units in Serbia, including refrigeration appliances plant in Valjevo and a water heater plant in Stara Pazova, employing about 1,200 people.

The announcement came as the Ljubljana stock exchange closed for the day. Gorenje rose 15 eurocents, or 2.6 percent, to close at 5.83 euros in Ljubljana, before the announcement. The stock has lost 55 percent of its value this year, compared with a 27.7 percent drop for the benchmark SBITOP index of six most-traded shares in the same period.

--Editors: Douglas Lytle, Zoe Schneeweiss

To contact the reporter on this story: Boris Cerni in Ljubljana at bcerni@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net


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