The Carel Group has commenced production at its new plant in Labin, in Croatia.

Located on the south-eastern coast of Istria, the new production facility, which covers an area of over 90,000sq m, follows three years in the planning and development at a total investment of five million euros (€5,000,000). It will allow the Carel Group to step up to the next level in production capacity in Europe and help spearhead and support the next stage in its growth plans.

With more than 7,000sq m of production lines focusing on expansion valve and speed drives production, the workforce of 110 (when fully open and operational) will adopt all the same procedures and processes as all other Carel plants to ensure the same quality standards and product reliability as at the company’sheadquarters.

The Croatian plant is the group’s fourth site outside its head office in Italy, following others opened in Brazil, China and the USA, bringing the total to seven production sites (the other three are in Italy, specifically at the group’s headquarters in Brugine, Padova province), in addition to 19 fully-owned subsidiaries worldwide.

In 2014 the Carel Group recorded sales of 181 million euros, an increase of 7.6% over 2013, with sales outside of Italy accounting for 80%. The new plant will help increase the Group’s volumes in Western Europe, where currently 49% of its sales are generated.

Group managing director Francesco Nalini said: “We are especially proud of the opening of this new plant in Croatia. Together with our Italian sites, this new plant will help support our growth in Europe. We are in fact continuing to develop our strategy that foresees the majority of our products manufactured at multiple sites, so as to guarantee continuity of supplies to customers in any circumstances.”