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GE, Whirlpool, Ariston in talks to save Iranian appliance makers

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Staff Writer | January 9, 2017
Iran is in talks with American home appliance makers General Electric and Whirlpool, and Italy’s Ariston, to revive bankrupt domestic manufacturers ccording to an official with the Ministry of Industries, Mining and Trade.
Iranian appliance
Iran   Factories have not been refurbished
“The ministry has initiated talks to sell Arj and similar [bankrupt] companies to the private sector, so that they can start joint ventures with credible foreign brands,” Abbas Hashemi was also quoted as saying by IRNA.

“Iran’s old home appliance factories have not been refurbished over the past decades. They have been using the same technologies since the day they were launched.”

The bankruptcy of Arj, Iran’s oldest home appliance manufacturer, grabbed the headlines in local media. Being a state-owned firm with most of its shares belonging to Bank Melli Iran, companies like Arj faced rising expenses following their nationalization after the Islamic Revolution of 1979, which lowered their income and profits.

These firms attempted to save themselves by drawing on heavy loans and subsidized banking facilities, which accumulated their debt and led them to bankruptcy.


 

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