Category Archives: Manufacturing

Sabaf launches the new Hinges Division

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Sabaf Group , an Italian multinational among the world leaders in components for household appliances, strengthens its offer in the hinges sector, launching a Hinges Division which brings together three historic brands such as Cmi, Faringosi and Mec , thus becoming the most important manufacturer in the world hinges market for ovens, dishwashers, washing machines, refrigerators, wine cellars, microwave ovens and other domestic appliances.

With around 70 million in turnover, the Hinges Division represents 30% of the group’s turnover , second only to the Gas Division. Thanks to the synergy of the various souls that compose it, the Sabaf Group Hinges Division is able to cover the demand for products from the entire world market , boasting presences in strategic countries such as Italy, Turkey, Poland, the United States and Mexico.

At the next Eurocucina (Fiera Milano Rho, 16-21 April) a primary Sabaf Group customer will present an oven with a Faringosi motorized hinge , which allows the door to be opened and closed in totally automatic mode. From remote control to silence, from resistance to mechanical fluidity, the hinge becomes the axis on which to develop increasingly sophisticated and high tech household appliances

V-ZUG increases profitability despite a difficult market situation

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Full-year results for 2023:
Declining sales volumes, increased gross profit and targeted cost management

In 2023, the V-ZUG Group generated net sales of CHF 585.4 million, 8.0 % lower than the previous year (CHF 636.3 million). During the pandemic-induced boom in 2021–2022, sales volumes were extraordinarily high. In addition to this base effect, inflation, rising interest rates and a corresponding decline in demand had a negative impact on sales volumes in the reporting year. This development was exacerbated by the reduction of inventory levels at V‑ZUG partners. To address the market-related decline in volume, additional measures to increase sales and cost-saving initiatives were implemented that had a positive effect on the operating result and cash flow. The operating result (EBIT) amounted to CHF 16.8 million (previous year: CHF 10.3 million, + 63.1 %). Free cash flow improved to CHF 18.2 million (previous year: CHF – 52.2 million). For the year 2024, V-ZUG expects the market environment to remain challenging and continues to be committed to its medium-term targets through investments in market development and positioning, production as well as ongoing projects to increase innovation and efficiency.

UK Antitrust gives green light to the joint venture between Whirlpool and Arçelik: Beko Europe is born

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Arçelik’s main goal is to create the future leader of the home appliance industry, and certainly this agreement marks a significant step towards that direction. In any case, the new industrial entity, Beko Europe, will include a wide range of brands of great relevance in the sector, ranging from Whirlpool itself to Indesit, Bauknecht, Privileg, Ignis, Grundig, Arctic, Elektrabregenz, Flavel and Leisure, Hotpoint, Altus and Blomberg. This diversification of the brand portfolio will provide a unique opportunity for the new joint venture to reach a wide range of consumers and consolidate its presence in the global home appliance market The agreement will also have an important impact on Italian territory. Arcelik will provide two factories in Romania to the new company, while Whirlpool will move its European large household appliances business unit, which includes seven factories in Europe and employs a total of 14,000 employees. In Italy, the operation will involve various factories, such as those in Siena for freezers, Comunanza (Ascoli Piceno) for washing machines and washer-dryers, Melano (Ancona) for hobs and Cassinetta (Varese) for built-in refrigerators and microwave ovens. Furthermore, the Carinaro (Caserta) site will be involved with a logistics warehouse and a reconditioning center for damaged Whirlpool products.

Domestic appliances deal cleared by the CMA

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Following a provisional clearance in February, the CMA is now allowing the proposed deal between Arçelik and Whirlpool to go ahead.Arçelik and Whirlpool are two of the largest suppliers of major domestic appliances (MDAs) in the UK, including washing machines, tumble dryers, dishwashers and cooking appliances. Arçelik supplies MDAs primarily under the Beko, Blomberg and Grundig brands, and Whirlpool supplies MDAs primarily under the Indesit and Hotpoint brands.

The Competition and Markets Authority (CMA) referred the deal to a Phase 2 review after initially identifying concerns which warranted further investigation during its Phase 1 investigation.

Since then, an independent CMA panel has gathered and analysed a wide range of evidence – including seeking views from businesses and customers – in order to assess the potential impact of this deal.

The panel reviewed evidence which showed that while Arçelik and Whirlpool both have strong market positions, they will continue to face significant competition from other suppliers. This includes well known suppliers and brands such as BSH (including its Bosch and Neff brands), Haier Group (including its Hoover and Candy brands), Samsung and LG; retailers’ ‘private label’ brands such as Logik and Bush (Currys and Argos); and more recent entrants such as Hisense.

The evidence also showed that the competitive landscape has changed considerably in recent years and continues to do so. Whirlpool’s market position in MDAs has significantly declined over the last decade, and it is likely that its European MDA business will be fundamentally different in the future. At the same time, suppliers such as Haier Group and Hisense have gained market share, and it is likely that they will continue to expand. These market dynamics are supported by a range of evidence, including from internal documents, financial analysis and third parties.Arçelik will set up a new standalone business, Beko Europe B.V., to which Arçelik will contribute its European MDA and small domestic appliances businesses and Whirlpool will contribute its EMEA MDA business. On completion of the deal, Arçelik will hold c.75%, and Whirlpool will hold c.25%, of the shares in Beko Europe.

Job cuts announced at Whirlpool 

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Whirlpool made the surprise announcement that the company will be shifting to “a more simplified and focused business model as part of its ongoing portfolio transformation.”
The company confirmed in a prepared statement that the transformation includes job cuts.
Job elimination discussions were said to have commenced this morning. Monday’s focus is apparently looking at reorganizing the top layers of the company and select areas of work.No word yet on the number of job cuts associated with the announcement

Midea ups global investment

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Chinese home appliance maker Midea Group will increase investment in localized research and development, and expand its footprint in Southeast Asia, Latin America and the Middle East.

The move is part of Midea’s strategy to grow new sources of revenue and make its brand influential abroad.Midea started as an OEM or original equipment manufacturer at the early stage in North America, but determined to develop company-owned brands in an attempt to enhance its core competitiveness globally. Currently, Midea’s household air conditioners command a 60 percent market share in North America.

SEB ACQUISITION PROCESS OF THE SOFILAC GROUP AND ITS EMBLEMATIC BRANDS LACANCHE AND CHARVET

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Groupe SEB wishes to strengthen its expertise in the high-end cooking segment and thus continue its growth in the professional and semi-professional markets.

Sofilac is a French family group majority owned by members of the Augagneur family. It designs, manufactures, and distributes high-end semi-professional (Lacanche brand) and professional (notably with the Charvet brand) cooking equipment. Lacanche, Entreprise du Patrimoine Vivant, and Charvet offer exceptional, timeless and durable products based on unique know-how. With its iconic brands, the Sofilac Group meets the requirements of professional chefs and cooking enthusiasts to allow them to best express their talent.

This acquisition would allow Groupe SEB to strengthen its presence in the cooking segment by completing its network made up of its premium brands (Krampouz, Forge Adour, WMF, All-Clad, and Lagostina). It would thereby support Groupe SEB’s ambition to become a key player in the profitable and growing professional and semi-professional equipment markets, with complementary brands, products and distribution channels.Manufactured for several centuries in a Burgundy village of the same name, whose history is closely associated with metalwork, Lacanche stoves and cookers perpetuate the French culinary tradition. A wide variety of options and finishes make each “Gastronome Piano” a unique object.

Faithful to its original values, this family business combines passion, innovation and know-how. Recognized as a “Living Heritage Company”, it pays particular attention to the nobility of the materials and components, as well as the quality of the enameled color adornments of its equipment.

Russian manufacturers of household appliances asked for help

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Russian manufacturers of household appliances are talking about record revenue, but they note problems with profits, which is due to increased production and advertising costs, competition from Chinese and Turkish companies, as well as increased commissions from marketplaces. Kommersant writes about this with reference to market participants.

A representative of the Redmond household appliance brand noted that manufacturers from friendly countries are increasing their influence, so the industry would benefit from government assistance. In particular, he asked for a ban on parallel imports of goods from vendors who left the Russian market.

Founder of the Smart Solution group (Jacky’s brand) Huseyn Imanov pointed out that his company’s revenue had doubled to 3.4 billion rubles. He expects growth of another 30 percent this year.

At the same time, on the issue of profit, the businessman believes that a number of manufacturers, especially small ones, will start to lose revenue. In his opinion, the high demand for placement on marketplaces leads to an increase in advertising prices on sites, which directly affects profits.

A representative of Weissgauf said that the brand’s revenue doubled in 2023, but expressed confidence that it would decrease in 2024 due to the increase in the cost of goods. The ruble exchange rate, inflation and other circumstances force Russian manufacturers to raise prices for goods, which is why they lose out to suppliers from China and Turkey.

He called the sanctions pressure a significant problem, which forces the use of gasket companies to organize custom production, which hits profits.

In turn, the commercial director Holodilnik.ru Alexey Pogudalov believes that a large localization of production in Russia could correct the situation. The expert stressed that the demand in the domestic market makes it possible to take such a step.

Haier Europe completes the installation of solar panels at its dishwasher factory

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Haier have successfully installed solar panels in their dishwasher factory in Eskişehir, Turkey
By producing clean and renewable energy, we are estimated to cover approximately 60% of the total energy consumption expected for Haier dishwasher and tumble dryer factories in Turkey.

Haier believe that product sustainability is not just about the materials but also the energy required for manufacturing. This is why they plan to expand the solar panel project to other plants, in line with our target of having 60% renewable energy across all the company’s controlled sites by 2025.