R&D and Innovation in Energy Efficient Products slide image

R&D and Innovation in Energy Efficient Products

• Low Cost Base Most labor intensive functions including HQ, R&D and production plants located in low cost countries (LCC) • . • Economies of Scale Huge production capacities in Turkey and Romania - REF and WM in Turkey are the largest plants under one-roof in Europe High capacity utilization ratios, especially in largest production hubs (min. 80%) Geographical Proximity to Target Markets Production hubs, serving nearby geographies with favorable lead times - - Europe, CIS and N. Africa from Turkey, Romania and Russia Sub-Saharan Africa from S. Africa ASEAN and China from Thailand and China May 2020 Cost Competitiveness PT ES SE FI $80 EE LV IE GB Arce LT BY NL PL BE DE LU CZ SK FR CH AT HU SI HR RO IT BA RS BG ME MK AL GR UA RU TR GE AM AZ 12 < 7 [7-14) [14-24) Hourly labour cost (for industry activity) (EUR/employee) [24-32) >32 Source: Eurostat 2016, Arçelik estimates for Turkey and Russia n.a.. KZ Arçelik
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