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PSI-655/08

GORENJE, d.d., Velenje

Velenje, Slovenia, 14 May 2008 - In accordance with the published article written by Mr. Rok Praprotnik in the newspaper Dnevnik on 14 May 2008 and mentioning Gorenje in the media, regarding the reporting about the execution of the contract of supply and delivery of AMV (Armoured Modular Vehicle) 8 x 8 Wheeled Vehicle for the Slovenian Army, we at Gorenje decided ones again to explain our role in this business and with this to disappear all doubts concerning the course of the production of wheeled vehicle in the factory in Šoštanj and to defend reputation of Gorenje.

Assembly of Wheeled Vehicle in Šoštanj goes on in accordance with time plan

In line with Gorenje's strategic plan and in addition to its core business, which involves the manufacture and sales of household appliances, Gorenje has also been venturing into other areas of business, drawing on the company's extensive wealth of experience, know-how, technology and production capacities and at the same time to assure above-average return on assets, Gorenje announced cooperation on June 2006 on the project for the delivery of the AMV 8 x 8 wheel vehicle for the Slovenian Army.

Business areas industrial equipment and tool & die making are practically part of Gorenje since the foundation of Gorenje. Within these areas are also businesses for different purposes: automotive industry, production of household appliances, warehouse equipment, equipment for mining industry and from last year autumn also the production of the wheel vehicle for the Slovenian Army. Due to the incessantly growth of the business areas industrial equipment and tool & die making, these areas were faced within the last years with the lack of production space. That's why we built new and modern production hall in Šoštanj, Slovenia, which enables further development of the industrial equipment, increase if the capacity and the productivity. Development of the tool & die making, which is at today's business stage in very good conditions, enables enlargement in the renovated production hall of the 3,500 m2 area.

One third of the new hall of the company Gorenje Indop in Šoštanj, Slovenia, is earmarked for the program of the military industry, where since November 2007, the making and assembly of AMV 8 x 8 Wheeled Vehicles for the Slovenian Army is taking place, under the supervision of the Patria. Till now, arranged value of this business amounted to one percentage of the Gorenje Group revenue.

In accordance with the agreement with the client, Patria, we made the viewing of production and assembly possible for all representatives of the government, so far and we explained to them, that we take a part in this project as subcontractor and that's why we do not have any kind of information's concerning contractual obligations between partners in project and the client, Ministry of Defence. President of the examining parliamentary committee Mr. Milan M. Cvikl abused this invitation in the media. That production and assembly of AMV 8 x 8 Wheeled Vehicles in Šoštanj are in line or before time frame were in March and in April this year personal convinced by the Minister for Defence Republic of Slovenia, Mr. Karel Erjavec, members of the parliamentary committee for defence with the president of this committee Mr. Anton Anderlič and the representatives of the Slovenian Army.

In the sales structure, around 80 % of the sales still goes to the core business, which involves the manufacture and sales of household appliances, and the fast growth has also other programs, such as the heating-thermic appliances program, TV sets, energy management and environmental protection, trade and services. This sales structure is planning to stay also in the future, and this is also confirming our further attention to our development and also to venturing into other areas of business, drawing on the company's extensive wealth of experience, know-how, technology, production capacities and above average return on assets.

The information of this announcement will be available on the official web site of the company Gorenje, d.d., Velenje, Slovenia, gorenje.com, at least 5 years from the date of the announcement.

 

 
Gorenje, d.d.
The Management Board

 

Date: 15. 5. 2008