Gorenje Tiki to export boilers to America – Over 3 million appliances produced in Stara Pazova in 10 years, expansion of Valjevo facility planned

Gorenje Tiki celebrated its ten years of operating in Stara Pazova in the midst of the process of continual improvement of the production and expanding to new markets. Ninety percent of the production in Stara Pazova facilities is exported to 34 countries throughout the world, and their boilers should start being exported to the American market next year.

This was confirmed for eKapija by Branko Apat, member of the Gorenje Group management.

– The Stara Pazova factory has produced 3.26 million boilers in ten years. The biggest markets are Germany, Austria, Serbia, Croatia and Russia, and we have also been preparing for the USA for a year now. We have tested the first samples, because it is important to adapt the device to the market, seeing how entire components differ between the markets. We believe that we will finish testing by the end of the year, so that the export can start next year.

Ten years ago, Gorenje Tiki started producing in Stara Pazova with a single production line and 15 employees. Today, this facility is the only production center of low-volume, mid-volume and high-volume boilers for the Gorenje Group, with six production lines and an annual production of half a million electric boiler units. They also produce heat pumps for heating water, houses and apartments, as well as for air conditioning of office and private space. The Stara Pazova factory now employs 500 workers.

The factory's annual sales amount to EUR 29 million. Each year, they invest an average of EUR 3 million in the production. Following last year's implementation of new energy standards in the EU, the electric boiler program was modernized and now contains the newly developed program of heat pumps for heating sanitary water and households. Investments in new laser technologies and the modernization of the technological production equipment are planned for 2016.

– We feel obliged to offer, despite the low purchasing power, energy efficient devices and support modern trends of living through innovations which make life easier – Apat emphasized.

The Gorenje Group in Serbia has three house appliances factories and one which produces automotive industry tools and major appliances. Around EUR 100 million has been invested in Stara Pazova, Valjevo and Zajecar so far, and Gorenje employs 2,500 people in its factories in Serbia. The company, however, isn't only a producer, but a buyer as well. The three factories in Serbia cooperate with 150 local suppliers, and up to 40% of raw materials used for the production are of local origin.

New investments have also been announced. The Valjevo factory will also celebrate its 10th anniversary this year, and Gorenje plans to further expand its production capacities in the city.

This entails new production premises and more than 200 new employees.

– So far, 1,500 workers have been employed in Valjevo, but we need more work force. This factory, along with the one in Velenje, is where we produce the most and we will certainly develop it further. We are buying the land of the company Elind in bankruptcy and this is where we will expand the most – Apat says.

He adds that they're not considering opening a factory in another city in Serbia.

– We will be developing the production in the three current locations. The plans in Zajecar have not been completed, and there's room in Stara Pazova as well – Apat says and adds that this shows that Serbia is strategically important for both the production and the sale of appliances and that they have come here to stay.

Commenting on the recent allegations that Panasonic might increase its ownership in Gorenje, Apat says that the Japanese corporation hasn't reached the decision yet, but that the acquisition could only be beneficial.

– Panasonic doesn't produce major appliances in Europe and the potential acquisition is an opportunity we could all take. Such an agreement would stimulate the growth of both economies, and here in Stara Pazova we have capacities for an additional 100-200,000 boilers – Apat said.

Gorenje was one of the largest exporters from Serbia in 2015, with EUR 140 million worth of export.

The group operates in 90 countries all over the world and produces in Slovenia, the Czech Republic and Serbia. According to the latest data, the sales in the first six months rose by EUR 581.3 million, which is an increase of 4.2% compared to the corresponding period in 2015.

Their products have been present in Serbia's market for over 65 years.

Ivana Bezarevic

Tiki doo Stara Pazova

Gorenje d.d. Velenje

Gorenje d.o.o Valjevo

Gorenje Home Zaječar

Panasonic Corporation

Gorenje Tiki

Gorenje Group

boiler production

Branko Apat

heat pump production

Gorenje factory Stara Pazova

Gorenje factory Valjevo

Gorenje factory Zajecar

Panasonic