Waiblingen, 6/28/2022 | Company press release
STIHL sets up new production site for cordless and electric products in Romania
STIHL is expanding its international production network over the coming years and is investing around 125 million euros in Oradea, Romania, for a new production site for cordless and electric products. This will mean the family-owned company is not only increasing its production capacities, but also strengthening the flexibility and resilience of its supply chains. Martin Schwarz, STIHL Executive Board Member for Manufacturing and Materials, commented: “Cordless is currently the fastest-growing market for STIHL. We expect that demand will continue to grow disproportionately in the coming years and that our plant in Tyrol, which currently manufactures a large portion of the cordless product range, will reach its physical capacity limits in the future. By establishing the new company in Romania, we are strengthening our global production network to ensure the best possible supply of cordless products to our customers in the future. With the newly founded production company ANDREAS STIHL Power Tools S.R.L., which is expected to start operation in Oradea in mid-2024, the STIHL Group is creating around 500 new long-term jobs.
Proximity to key markets and good infrastructure
The new site will be built in Oradea’s Eurobusiness I Industrial Park and will have around 147,000 square meters of floor space. A contract on this basis was signed on June 28, 2022 by STIHL, the City of Oradea, and the Romanian marketing company ADLO Sa., which manages the industrial park for the city of Oradea. STIHL Executive Board Member Martin Schwarz: “STIHL generates a large portion of its cordless unit sales in Europe. The city of Oradea impressed us not only because of its optimal connection to the markets that are important for us, but also its comprehensively developed infrastructure and good economic framework conditions.” Florin Birta, Mayor of Oradea, welcomes the company’s decision: “STIHL becoming established here represents a strategic investment for the municipality of Oradea.”
State-of-the-art new building as an investment in the future
The new STIHL plant in Romania will be designed as an advanced manufacturing facility in line with the principles of lean production; a high degree of digitalization in production will also be implemented. In addition to production halls, the site will comprise office areas, a cafeteria, and break rooms for employees. Also in mind for STIHL are climate targets and improving the carbon balance for the new building, so there will be a focus on sustainable construction and energy-efficient production.
International production as a success factor
The STIHL Group has maintained an international production network for more than 40 years. Today the company has production facilities in a total of seven countries: Germany, Switzerland, Austria, USA, Brazil, China and the Philippines. Because the same high standards apply at each location, STIHL can ensure top quality – regardless of which country the parts and products are manufactured in. This production network enables STIHL to manufacture in locations close to key markets, act flexibly, and compensate for volatility, for instance in supply chains. A large number of STIHL cordless products are currently produced in Austria at STIHL Tirol. The United States is another production location, with China soon to follow. STIHL also manufactures its own battery packs, especially for professional applications, at its head office in Waiblingen, Germany, and in Virginia Beach, USA.
