Gorenje to open factory in Vietnam?

Slovenian household appliances manufacturer Gorenje plans to open a factory outside Europe within the next five years, either in Vietnam or some other Asian country where manpower is cheap, the Ljubljana daily Dnevnik writes.
- Our strategy for the years to come is to focus on the global market and premium brands. Global sales growth will be achieved with the existing production locations, and we've assessed that local production will be necessary for faster growth. Therefore, the plan is to establish a factory outside Europe within the next five years, maybe in Vietnam or some of its neighboring countries - the web portal Seebiz cites Gorenje as announcing in a release.

As people from the Slovenian company added, they intend to have a new factory built (greenfield investment) and enter into partnership with local manufacturers, but they didn't rule out the possibility of acquiring a local manufacturer either.

The Gorenje Group's strategy calls for the expansion of business outside Europe by 2020 to reduce dependence on the European market.

The average wage of factory workers in Vietnam is about USD 150 (about EUR 140), while the average net salary in Slovenia is somewhat bigger than EUR 990, the release reads.

Gorenje d.o.o. Beograd

Gorenje d.d. Velenje

Gorenje factory in Vietnam

greenfield investment

premium brands