German power tool manufacturer STIHL inaugurates EUR 125 mln factory in western Romania

The German STIHL Group has officially inaugurated its first production facility dedicated exclusively to battery-powered equipment in Oradea, western Romania, on Wednesday, October 15, after an EUR 125 million investment. Construction began in March 2024 and was completed in less than 18 months.

The factory will gradually increase its production capacity, reaching an annual volume of 1 million battery packs by 2026. By 2028, production is expected to reach 1.8 million battery packs and 1.7 million battery-powered tools.

Designed as a central element of the international production network, the Oradea factory will play a key role in meeting the growing demand for battery-powered products in European markets, the company said.

Initially, the factory will produce battery blowers and AP battery packs from STIHL’s professional range. Over time, the portfolio will expand to include other battery-powered tools such as trimmers, chainsaws, and other equipment.

Battery technology has become a key growth driver for the company. Currently, more than one in four STIHL products sold worldwide is battery-powered. The company aims to increase this share to approximately 35% by 2027 and around 80% by 2035.

According to the company press release, the decision to build the new factory in Oradea reflects STIHL’s strategy to strengthen its presence in Europe and to place production close to key markets. The new facility has 47,000 square meters of operational space on a total area of 147,000 square meters. 

Present at the inauguration, Romanian prime minister Ilie Bolojan said that the factory signals that Romania can be a reliable partner to companies. “This investment means jobs, cutting-edge technology, real know-how transfer, and the positioning of Romania at the heart of an industry in continuous transformation,” he argued.

Currently, the factory employs approximately 135 people, and by 2028 is expected to reach around 700. STIHL employs nearly 20,000 people worldwide.

radu@romania-insider.com

(Photo source: press release)


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