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Arçelik

R&D, innovation and sustainability
Always introducing distinctive, innovative products and technologies to global markets, Arçelik established two new R&D centers and a Design center in Turkey in 2016. The Company maintained its leadership position with 10 R&D and Design centers, and continued its efforts to further expand its international R&D network by setting up a new office in Boston, Massachusetts (US), after opening offices in Taiwan, Portugal and the UK. During the year, Arçelik retained its first place in the Turkish Patent League, filing the highest number of international patent applications among Turkish companies. As a result, Arçelik ranked 78th - its best rank to date - on the Top 200 list issued by the World Intellectual Property Organization (WIPO).

Arçelik established Garage, a shared creative platform, to encourage corporate entrepreneurship and design-focused thinking while accelerating idea-to-product and product-to-market processes via its advanced digital prototyping infrastructure. The company also started the Technical Academy Program, a training platform aimed at developing the skills and competencies of R&D and Manufacturing Technology employees toward future technologies.

Arçelik continued R&D efforts and activities to develop communication protocols, cloud security, data analytics, robotics, and artificial intelligence related to digitalization and the Internet of Things (IoT). In line with the objective of improving its capabilities in advanced manufacturing technologies and creating a “digital factory” that enables more efficient and higher quality production, the Company established “Atölye 4.0,” which works on advanced automation tools, artificial intelligence, digital twins, image processing, mobile and collaborative robots.

In 2016, Arçelik continued undertaking R&D efforts to reduce the environmental impacts of its products, such as energy and water consumption, noise levels. Thanks to these efforts, the Company developed the following products which stand out with their efficiency features:

• A++ energy class dishwasher AquaDrop using 5.5 liters of water
• A+++ (-10%) energy class dishwasher with ProSmart™ Inverter Motor technology
• Gas cooker with burners that are up to 25% more efficient than standard gas cookers
• Built-in oven with a noise level of A Class
• A+++ energy class no-frost combi refrigerator with a depth of 60 cm
• A+++ (-10%) energy class fixed-cycle heat pump dryer with 8 kg capacity

Arçelik also launched many innovative products and applications, including:

• “Homewhiz” application for controlling refrigerators, washing machines, dryers, dishwashers and built-in ovens via smartphones, tablets and smart TVs.
• The “Smart Home Assistant,” which enables consumers to shop, pay bills and make banking transactions online, and to quickly access useful information that makes life easier, answering their questions in Turkish.
• HerbGarden™ which enables consumers to plant and grow healthy herbs in their own homes without using pesticides.
• “Capsule Turkish Coffee Machine” using the Cooksense technology and with a selfcleaning feature that is activated with the simple push of a button.
• Freestanding oven and “Energy Star 24” dryer for the North American market.
• OLED TV featuring an ultra slim design and 4K technology.
• The first Smart LED Slim Android TV manufactured in Turkey.

Arçelik continued to support global climate change initiatives in 2016. To this end, the Company provided technical support for calculating potential energy savings with transition to energy-efficient refrigerators and conducting market analysis in Thailand, South Africa, Ukraine and Turkey, within the framework of the UNEP-GEF United for Efficiency (U4E) Project. Additionally, Arçelik participated in the UNFCCC – 22nd session of the Conference of the Parties (COP22) as a speaker.

By recycling used products with high energy consumption at its Eskişehir and Bolu recycling facilities, Arçelik also contributed to the country’s energy savings, equivalent to the total capacity of six 2.5-megawatt wind turbines. Aiming to emphasize the power of recycling, famous design artists created objects from these recycled materials, which were then displayed at the “Cycles” exhibition at Contemporary Istanbul.

Investments
Arçelik’s global sales and marketing office network expanded to 34 locations in 2016. The Company entered the US market with its Beko brand and aims to ramp up its presence in the US from 2017 and onward.

Arçelik plans to establish a trade corridor between the Asia–Pacific region and Turkey, through which it can develop and maintain a consistent, robust presence. To this end, the company took a strategic step forward and acquired Dawlance, the leading white goods manufacturer in Pakistan, which has the sixth largest population in the world. The acquisition included three manufacturing facilities and the entire distribution network. With this acquisition, Arçelik gained an important position in this region, which has a high economic potential with its young population and fast-growing middle class.

Arçelik is expanding its operations in Romania via a new factory investment. The Company plans to make this facility its pilot production site for Industry 4.0 standards.

Arçelik restructured its organization in Turkey by establishing Arçelik Pazarlama A.Ş. The Company plans to continue its retail transformation through new channels and digital initiatives to bolster its market leadership position in Turkey.

With the renewal of the partnership agreement between Arçelik and LG, the Company aims to manufacture commercial air conditioning systems in addition to domestic air - conditioners.

Strong and consistent growth
Despite contractions and economic fluctuations in key markets, Arçelik maintained its strong, consistent growth while improving its operational profitability.

In 2016, Arçelik’s consolidated turnover increased 13.6% year-on-year to TL 16,096 million. International revenues accounted for 60% of consolidated turnover and the Company’s net profit totaled TL 1,304 million.

Awards and achievements
• Arçelik was included in the global “A List: The CDP Climate Performance Leadership Index” for the second time.
• Arçelik was included in the BIST Sustainability Index for the 3rd time.
• Arçelik received an “AAA” rating in the Morgan Stanley Capital International (MSCI) Global Sustainability Index Series.
• Çayırova Washing Machine Plant was presented with first prize as the “Most Energy-Efficient Industrial Facility” by the Ministry of Energy and Natural Resources; Eskişehir Refrigerator Plant won second prize in the SEVAP-2 category (Projects for Increasing Energy Efficiency in Industry).
• The “Most Successful R&D Center” and “Most Successful R&D Center in the Consumer Durables Industry” titles at the Private Sector R&D Centers Summit went to Arçelik.
• The Company garnered the “R&D Leadership” award at TIM (Turkish Exporters Assembly) Innovation Week.
• Bolu Cooking Appliances Plant received first prize in the category of “R&D - Large Enterprises” with the Highly Efficient Gas Cooker Burner Design Project from the Ministry of Science, Industry and Technology.
• Arçelik was named the “Most Popular Brand” in Turkey in the “Turkey’s Lovemarks” survey.
• Beko POS cash register won the TESID Innovation & Creativity Award in the category of “Product Development Process.”
• Beko EverFresh+® refrigerator won the CHEARI – Technology Innovation Award.”
• Grundig 8kg A+++ Hybrid Dryer garnered the “Stiftung Warentest Test Champion” award.
• Beko and Blomberg Dryers earned the “2017 Energy Star” label granted by the US Environmental Protection Agency (EPA).

2017 and beyond
Undertaking new investments and transformation initiatives to bolster its solid position in home technologies, Arçelik will continue operating in a wide region from the US to the Asia–Pacific, in line with its sustainable and profitable growth strategy and the goal of becoming the industry’s leading player. Arçelik, shaping its growth strategy in accordance with global trends and sustainable development goals, will continue investments focused on R&D, innovation, quality, design and brand with a consumer-centric approach. Arçelik focuses its efforts on organic growth by developing market-specific products, as well as its managerial competencies for its existing area. The Company will also evaluate new opportunities for green-field investments and acquisitions in new markets.

Additionally, the Company aims to maximize the effectiveness of its global organization by continuously improving employees’ talent and skills.

 

Headquarters

​Turkey​/İstanbul

Production Plants - Turkey​​

 

​​​​Eski​​şehir, Turkey Red Arrow Refrigerator Plant
İstanbul, Tuzla, Turkey Red Arrow Washing Machine Plant
İstanbul, Beylikdüzü, Turkey Red Arrow Electronics Plant
Bolu, Turkey Red Arrow Cooking Appliances Plant
Ankara, Turkey Red Arrow Dishwasher Plant
Tekirdağ, Çerkezköy, Turkey Red Arrow Electric Motors Plant
Eskişehir, Turkey Red Arrow Compressor Plant​
Tekirdağ,Çerkezköy,Turkey​​​​ Red Arrow Tumble Dryer Plant​
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International Sales and Marketing

 

Germany Red Arrow Beko Deutschland GmbH​​
Austria Red Arrow ​​​​Elektra Bregenz AG​​
Czech Republic Red Arrow Beko S.A Cesko
China (Shangai) Red Arrow Beko Shanghai Trading Co.​
France Red Arrow Beko France S.A.S.
Spain Red Arrow ​Beko Electronics Espane S.L.​
Italy Red Arrow ​​​​​​Beko Italy S.r.I​​
Slovakia Red Arrow Beko Slovakia S.R.O.
​ Poland Red Arrow Beko S.A
The Netherlands Red Arrow Grundig Multimedia B.V *
Australia Red Arrow ​​Beko A and NZ Pty Ltd.​​
Taiwan Red Arrow ​​Ardutch B.V.​
Romania Red Arrow S.C Arctic S.A​​​​​​​​​​
Russia Red Arrow Beko LLC
China Red Arrow Changzhou Beko Electrical Appliances Co. Ltd.​
South Africa Red Arrow ​​Defy Appliances (PTY) Ltd.​​ **
Egypt Red Arrow Beko Egypt Trading LLC
Ukraine Red Arrow Beko Ukraine LLC
UK Red Arrow ​​​​​​Beko Plc
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* Established in Holland, Grunding Multi Media is a Holding company with 10 subsidiaries.

** Defy Appliances (PTY) Ltd.'s headquarters is located in the city of Durban, Jacobs, SA.​