Midea Group closed 2023 with an 8.1% growth in turnover, reaching 373 billion yuan (around 48 billion euros) and above all a boom in cash flow: + 67% and in profits: + 14% at 33.7 billion yuan (4.3 billion euros). The gross margin of the Chinese group is in fact around 26-27%. Sales increased both in China (+9.9%) and in the rest of the world (+5.8%). Midea exported 151 billion yuan (19.5 billion euros).
Midea has 45% of the world air conditioning compressor market and is a leader in the Chinese washing market but is increasingly present in advanced technological sectors such as industrial automation and green technologies.Midea products have been exported to more than 200 countries and regions around the world, and the company continues to expand its production facility abroad, promoting the construction of production centers in Indonesia, India, Thailand, Brazil, Mexico, Italy , Egypt
Category Archives: Manufacturing
Whirlpool Corporation Completes Major Milestone
Whirlpool Corporation today announced the completion of its transaction with Arçelik A.Ş (“Arcelik”). This marks a significant step in Whirlpool’s portfolio transformation and is expected to provide considerable opportunities to maximize value.
The transaction creates a new European appliance company by combining Whirlpool Corporation’s European major domestic appliance business with Arcelik’s major domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses. Whirlpool Corporation now owns 25 percent of this new entity, called Beko Europe B.V., and Arcelik owns 75 percent¹. Whirlpool Corporation is retaining ownership of InSinkErator and its EMEA KitchenAid small and major domestic appliance business. Separately, Whirlpool also completed its previously announced sale of Whirlpool’s Middle East and Africa business to Arçelik A.Ş.Beko Europe B.V. will have combined revenue of approximately €5.5² billion based on 2023 results. The company will be well-positioned to deliver value to consumers through attractive brands, sustainable manufacturing, product innovation and consumer services.
The transaction is expected to deliver more than $750 million in net present value of future cash flow value, in addition to unlocking $200-$300 million of incremental free cash flow in 2025. Additionally, Holger Gottstein and Gilles Morel, two members of Whirlpool Corporation’s Executive Committee, will be appointed to the board of directors of Beko Europe B.V.
Whirlpool Corporation will focus on its strong positions in the Americas and India, with its No. 1 share position in the major domestic appliance businesses for both North and South America. Additionally, new products, including those from the higher-margin KitchenAid small domestic appliance business, are expected to continue to be a key driver for share and profit growth
Farewell to Roberto Bertazzoni (Smeg)
On March 31, Roberto Bertazzoni died at the age of 81. He had been at the helm of Smeg as president and CEO since the 1970s , now directed by his son Vittorio. Appointed Cavaliere del Lavoro in 1993, Roberto Bertazzoni was the protagonist of the industrial epic that led the Smalterie Metallurgiche Emiliane Guastalla founded by Roberto’s father in 1948 to become a multinational with around 2,600 employees and a turnover of 900 million. The funeral on Tuesday 2 April in the cathedral of his Guastalla
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Chinese firms target Korea with premium home appliances
Chinese home appliance manufactures such as Haier, Midea, and Xiaomi have begun retailing their products on South Korea’s largest online marketplace, Coupang, and offer after-sales service (AS) through the platform. Additionally, China’s Roborock led the domestic robot vacuum cleaner market last year with its product priced over 1.6 million won. Once perceived as “cheap” and budget-friendly, Chinese home appliances are now targeting the Korean market few years ago, Chinese electronics sold in Korea mainly consisted of small appliances like humidifiers and hair dryers, or low-cost imitations of premium products. Recently, however, premium items such as robot vacuum cleaners, high-end TVs, and refrigerators have emerged in the local market. The design and quality of these products are reported to be on par with Korean and Japanese counterparts, posing a significant threat to Korean companies’ premium offerings. A senior appliance company official noted that Chinese products are also aggressively entering the global premium market, utilizing a strategy similar to the approach South Korea once employed to catch up with Japanese appliance
Sabaf launches the new Hinges Division
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
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
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
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
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
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