- Arteche will increase its transformer production from 100,000 per year to 220,000 per year thanks to its new facilities in Turkey
- Arteche's sales in Asia have grown by over 25% since the incorporation of Esitaş, with offices in Turkey and Indonesia, in July 2021
- The incorporation of Esitas into Arteche has exceeded expectations in terms of synergies, further strengthening the supply chain and enhancing the group's positioning in the Asian market
Mungia (Bizkaia), 1 de junio de 2023.- Arteche has opened its new plant in Turkey, located in the town of Dilovasi (east of Istanbul), reaching a new milestone in its growth and internationalization strategy. The new 19,000-square-meter facility will enable the Basque company to respond to the growing demand in the Asia-Pacific region. The total investment has exceeded 2 million euros and is expected to increase by another million euros over the next 2-3 years.
The current capacity of the Arteche plant in Turkey was over 100,000 transformers per year. With the new factory, they will be able to manufacture 222,000 transformers per year, doubling the current figure and staying in line with customer orders and market trends.
In addition to being able to manufacture twice as many transformers, this new factory allows the company to include new product lines and train a larger workforce. Arteche's Turkey plant will thus make the company one of the largest and most significant manufacturers in the region.
The dimensions of the plant require the integration of new production machinery which, thanks to the increased space, will enhance distribution, streamline workflows and avoid interruptions in production. In this new plant, part of the current processes will be automated, making industrial management more efficient and dynamic. This factory is also aligned with Arteche's sustainability objectives and will have a 100% renewable energy certificate (it is located in an OIZ, Organized Industrial Zone, whose global supply is of renewable origin).
At the opening ceremony, which was attended by more than one hundred guests including authorities, customers, local suppliers and agents, Alex Artetxe President and CEO of the company, highlighted, "As a society, we have a commitment to the energy transition, driven by the ever-increasing demand for electricity. This goal is no longer a distant one. This cannot wait and the majority of countries worldwide are finally committed." Referring to the significant value that this new, much larger and more modern plant bought to the Group, he emphasized: "We are, therefore, facing a great challenge in which the electricity sector plays a key role. And Arteche, as part of this sector, we are committed to this goal, and we have to contribute to the acceleration of this transition to make a more sustainable planet. And now, this factory in Dilovasi will be a testament to our dedication."
Inorganic growth in Asia-Pacific
Following Arteche's jump to BME Growth, one of their initial acquisitions in July 2021 was Esitaş, a company with offices in Turkey and Indonesia specializing in the manufacturing of medium and low voltage measuring transformers. This transaction is part of Arteche's inorganic growth strategy, as defined in its 2023 Strategic Plan. Its incorporation into the group has strengthened Arteche's industrial positioning in Asia, reinforcing its global leadership in the Measurement and Monitoring business.
This has exceeded expectations in terms of synergies, further strengthening the supply chain and enhancing the group's positioning in the Asian market. Arteche's sales in Asia have grown by over 25% thanks to the incorporation of Esitaş and, in terms of growth expectations, all macroeconomic indicators related to the energy market indicate that demand in the sector will remain strong globally and, in particular, in the Asian region.
Arteche's new plant in Turkey presents significant opportunities for the group in a dynamic market like Turkey, a country with a strong demand for medium-term investments in electrical infrastructure due to its growth and substantial investment in renewable energy. These two factors have made Turkey into a significant hub for electrical equipment manufacturers, catering to the demand in regions where a large development of electrical installations is expected (such as, for example, in Egypt or Saudi Arabia).
With these new facilities in Turkey, Arteche marks a significant milestone in its internationalization strategy that allows it to maintain its commitment to customer proximity, flexibility, and value creation in the markets where it operates.
About Arteche Group
Founded in 1946, the Arteche Group operates in the electrical sector, from generation to distribution, specializing in the electrical equipment, components, and solutions industry. Within this framework, the Arteche Group is among the TOP 3 world leaders in the instrument transformer market, number 1 in the auxiliary relay market, and maintains a regional leadership position in the rest of the products, especially those aimed at highly demanding and value-added markets, such as renewable generation and the railway sector.
The Arteche Group's business is focused on enabling the transmission and distribution of electric power from any generation plant to the end user with efficiency, quality, and reliability. This is why the company invests recurrently in R&D&I, with the intention of improving the quality and efficiency of its products, innovating in the development of new products, and offering the customer a differential added value. Arteche is currently available in more than 175 countries with commercial distribution capabilities; it has 13 factories in Europe, America, Asia and Oceania, including 6 research centers; and employs more than 2,600 people worldwide.
