The STIHL Group is to expand its international manufacturing network by investing around 125 million euros in the coming years in a new production site for electric and battery-operated products in Oradea, Romania. This will enable the family-owned company not only to increase its production capacities, but also to strengthen the flexibility and resilience of its supply chains. "Battery-powered products represent the fastest-growing market for STIHL at the present time," says Martin Schwarz, STIHL Executive Board Member for Manufacturing and Materials. "We expect demand for these products to continue rising faster than any other category in the years ahead. This means that our Tirol plant, which currently manufactures a large portion of our battery-powered range, will one day reach the limits of its space and capacities. The new location in Romania will add to our global manufacturing network and keep us in the best possible position to continue supplying our customers with battery-operated products in the future." The newly formed production company ANDREAS STIHL Power Tools S.R.L., which is set to begin operating in Oradea in mid-2024, will create some 500 new jobs for the STIHL Group in the long term.
Close to key markets and a good infrastructure
The new plant will be built in Oradea's Eurobusiness I Industrial Park and comprises approximately 147,000 square meters. The contract was signed on June 28, 2022 by STIHL, the City of Oradea, and the Romanian marketing company ADLO Sa., which manages the industrial park on behalf of the city. "STIHL generates a large share of its battery-operated power tool sales in Europe," says STIHL Executive Board Member Martin Schwarz. "The city's outstanding links to our key markets, its highly advanced infrastructure, and the strong economic environment were all compelling reasons to choose Oradea." The mayor of Oradea, Florin Birta, is delighted to welcome the company to his city: "STIHL's new location is a strategic investment in the municipality of Oradea."
State-of-the-art new building as an investment in the future
The new STIHL plant in Romania will be a state-of-the-art manufacturing facility designed according to the principles of lean production and is to feature a high degree of digitalization in production. In addition to the production halls, the site will comprise offices, a cafeteria, and break rooms for employees. STIHL's plans for the new building also take into account the company's climate targets and carbon footprint by ensuring a sustainable design and energy-efficient production.
International manufacturing drives success
The STIHL Group has maintained an international manufacturing network for more than 40 years. Today, the company has production plants in a total of seven countries: Germany, Switzerland, Austria, the United States, Brazil, China, and the Philippines. Because the same high standards apply at each location, STIHL can ensure top quality – regardless of the country in which the parts and products are made. The manufacturing network enables STIHL to produce in locations close to the market, act flexibly, and balance out volatility in areas such as supply chains. A large number of STIHL battery-operated products are currently made in Austria by STIHL Tirol. Additional production locations include the United States, with facilities opening soon in China as well. STIHL also manufactures its own battery packs, especially for professional applications, at its headquarters in Waiblingen, Germany, and in Virginia Beach, USA.
Caption of Group Picture
Participant of the signing from left: Florin Birta (Mayor of Oradea Municipality), Alina Silaghi (General Manager of ADLO), Andreea Odovinca (Financial Manager of ANDREAS STIHL MOTOUNELTE S.R.L. and representative of ANDREAS STIHL Power Tools S.R.L.), Christina Gruna (Vice President Factory Planning at STIHL) und Dirk Liepold (Manager Manufacturing Predevelopment and Strategic Production Development at STIHL).