The German Federal Court of Justice has upheld a vacuum cleaner patent owned by German manufacturer BSH, thus overturning a first-instance ruling. It is now likely that infringement proceedings will resume. A parallel dispute in Sweden has resulted in a referral to the CJEU concerning jurisdictional questions.Since 2007, BSH Hausgeräte and Electrolux have been fighting over vacuum cleaner technology. Now the German Federal Patent Court has upheld a patent owned by BSH, meaning suspended proceedings in Düsseldorf could now resume
Category Archives: Manufacturing
Whirlpool joining U.N. Global Compact’s CEO Water Mandate wil
Whirlpool CEO and Chairman Marc Bitzer has signed a commitment to join the U.N. Global Compact’s CEO Water Mandate, a platform for business leaders to advance water stewardship. Endorsing companies commit to actions that conserve water across six key areas, including our operations and products, supply chain, watershed management, collective action, public policy, community engagement and transparency. “Joining the U.N. Global Compact’s CEO Water Mandate will help to guide us in driving business awareness and actions in support of achieving some of our key Sustainable Development Goals,” said Whirlpool Corp. Chairman and CEO Marc Bitzer. “We’re proud to join this compact along with more than 230 other endorsing companies, and we look forward to continuing the implementation of changes in our operations worldwide that will conserve water for current and future generations.”
LG India new production line
After more than 25 years of providing people in India with innovative products, LG has become a household name in the country by building its reputation as the top producer of home appliances. Last year, the company was even named by TRA Research as the Most Trusted Brand in the refrigerator and washing machine categories as well as the air conditioner and microwave oven categories, which not only suggests LG India has retained trust and leadership, but also enhanced its portfolio in this vital market.
So, to perform its duties as an industry leader while reaffirming its commitment to the government’s ‘Make in India’ mission, LG has invested a total of approximately 24 million USD to open a new manufacturing line for its premium side-by-side refrigerators in Pune, India.Equipped with advanced technologies and machineries, the upgraded Pune campus can produce 200,000 side-by-side refrigerator units every year as well as a large number of double-door and single-door refrigerators.
Electrolux Group has received a Statement of Objections from the French Competition Authority
The French Competition Authority has issued a Statement of Objections involving various parties within the home appliance sector and where Electrolux France is alleged to have acted in breach of antitrust rules in France between 2009 and 2014.
A Statement of Objections is a formal step in an investigation whereby the investigation services of the French Competition Authority (Autorité de la Concurrence) inform the concerned parties of its preliminary findings (before the case is presented to the judging panel of the French Competition Authority). The Statement of Objections does not prejudge the final outcome of the case.
As previously disclosed in press releases and annual reports, the company became in 2013 the subject of an investigation by the French Competition Authority regarding possible violations of antitrust rules. The Authority has thereafter decided to conduct two separate investigations one of which was completed in December 2018. The Statement of Objections that now has been issued relates to the other investigation.the French Competition Authority’s Statement of Objections it is alleged that various parties within the home appliance sector have breached the antitrust rules. In particular, Electrolux France is alleged to have breached the antitrust rules by conducting resale price maintenance in the home appliance sector between 2009 and 2014 and by exchanging with other parties competitively sensitive information relating small appliances in France between 2009 and 2014.
The Statement of Objections is currently being carefully analyzed and Electrolux is preparing its defense. Nevertheless, given the alleged infringements and the nature of this investigation, it cannot be ruled out that the outcome could have a material impact on the Group’s financial result and cash flow. At this stage it is however not possible to evaluate the extent of such an impact.
This is information that AB Electrolux is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication
Electrolux rumours
There have been rumors about the sale of the Swedish company for some time now
“we don’t comment on rumors,” Electrolux PR manager Paul Palmstedt told the Swedish financial publication Privata Affaerer .
Chinese company Midea had been rumoured to be interested
Electrolux is not sailing in good waters at the moment. It loses on the North American market and does not gain on the European one which is suffering from weak demand. Things are going better in the professional segment and partly in the built-in segment, sure, but the cost base is high and making margins isn’t easy.Midea has repeatedly stated that it sees its future in high value-added productions such as advanced robotics and automotive. It is said that you intend to invest money and intellectual resources in a business like ‘white’ which will be stagnant in the next few years at best.Electrolux collaborates with Midea in China to promote AEG without the need to exchange shares. One can think of a partial entry of Midea into the shareholding structure of Electrolux, or of joint ventures for the marketing in Europe (and in the USA) of products made by Midea but conceived and sold by Electrolux.
Forbes names Whirlpool Corporation One of ‘America’s Best Large Employers’
Whirlpool Corporation (NYSE: WHR) announced today it has been named to Forbes’ 2023 list of the “America’s Best Large Employers.” This marks the second consecutive year that Whirlpool has appeared on the annual list, which recognizes 500 companies across 45 different industries that are admired for their commitment to support and empower their U.S. workforce.
Miele green aluminium
Miele introduces green aluminium to production: After having started to deploy green steel, we are now the first company in our industry to use primary aluminium, produced exclusively using green electricity from hydropower.
As part of a pilot project, we will use profile strips in the manufacture of ovens, which as of this year will be made from around 150 tons of CO2-reduced aluminum and are 100 percent recyclable. This way, we reduce our CO2 footprint by 645 tonnes a year. In doing so, we make yet another contribution to greater sustainability in the supply chain.
“The objective is to use climate-friendly aluminium on a broad front and thereby contribute towards a future-proof economy”, says Senior Vice President Hans Krug who is in charge of Purchasing at the Miele Group. In the picture, Hans Krug (left) and Oelde plant manager Rouven Vierfuss show a profile strip made of aluminum.
Hisense Europe is officially opening an innovation center in Velenje
Hisense Europe, the European part of the Chinese technology group Hisense, which also includes Gorenje, is officially opening an innovation center next week in Velenje. The grand opening of the center for research and development in the field of household appliances for the whole of Europe and for kitchen and premium appliances for the global market will take place on Monday. In the invitation to the event, Hisense Europe, which is based in Velenje, wrote that the development of technology and devices within the group will take place in Velenje, regardless of where the production of individual devices will take place and which market they will be intended for.
With the opening of the center, for which they have been preparing for a long time, “Hisense further strengthens the importance of Slovenia as its central European production and development location, which also brings new investments and jobs”, the corporation pointed out.
Hisense Europe has business units in 27 European countries, as well as three production and four research and development centers. In the group, the field of research and development was identified as one of the most important pillars of the company’s development. This is also why they have invested a lot of money for this purpose in recent years – last year there was talk of 50 million euros – and the group has also strengthened the recruitment of technological staff.
In addition to Velenj, the group has so far carried out research and development activities in Slovenia in Ljubljana and Maribor.
Japan’s Panasonic, Daikin Invest in Post-Covid China
Japanese companies, including Panasonic Holdings and Daikin Industries, are increasing their investments in China amid the post-Covid shake-up of global supply chains.
From 2022 to 2024, Panasonic’s investment in China will exceed JPY50 billion (USD385 million), including transferring its production line of electric rice cookers to Hangzhou, the Osaka-headquartered firm told Yicai Global recently.
Panasonic will also build or upgrade more than 10 plants to produce home appliances and air conditioning supplies in China, an insider said. The Hangzhou plant will become Panasonic’s first newly-built home appliance plant in China over the past 18 years. The facility will go into operation next year to make CNY2 billion (USD296.2 million) worth of microwaves, electric rice cookers, and other cooking appliances per year.
Strategic Decisions
Transferring the production line of electric rice cookers to Hangzhou is not a recent decision as it was made after long and thorough deliberation since the Covid-19 pandemic, Tetsuro Homma, regional head of China & Northeast Asia at Panasonic Holdings, told Yicai Global.
The basic idea is to sell products where they are produced, Homma said. “We see that supply chains in China are resilient and we are willing to bring the advantages of Chinese supply chains into full play.”
Besides Hangzhou, Panasonic also produces electric rice cookers in India’s Chennai, Homma said, adding that the eastern Chinese city has advantages in policies on bonded areas, technologies, and supply chains while India has lower labor costs.
Another Japanese firm Daikin will start building its third production base in China in Huizhou, Guangdong province, next month. The new plant is scheduled to start production in August 2024 and achieve CNY7 billion in revenue per year.
Daikin’s rising capacity indicates that the air conditioning giant is confident about the potential of the Chinese market and its after-market demand, said Fei Teng, analyst at research platform ChinaIOL. “Users in the central A/C market, in particular, speak highly of Japanese products
Whirlpool production hit
Whirlpool’s production volumes took a 5% hit in Q4 because of a “one-off” disruption at an unnamed supplier that has since been resolved, CFO Jim Peters told investors Tuesday.
Peters described the firm as a “critical supplier providing a common platform of parts for multiple manufacturing locations and products.”
The issue was fixed in mid-January, but the finance chief noted that there were confidential “ongoing discussions” with the supplier, which prevented Whirlpool from sharing additional details about the disruption.Supply Chain Dive
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DIVE BRIEF
Whirlpool’s production takes a hit after supplier disruption
Published Feb. 1, 2023
Ben Unglesbee’s headshot
Ben Unglesbee
Senior Reporter
The Whirlpool logo is seen on a display of clothes washers and dryers
The Whirlpool logo is seen on a display of clothes washers and dryers. The appliance maker’s profits took a $100 million hit after an interruption at a key supplier. Justin Sullivan via Getty Images
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Dive Brief:
Whirlpool’s production volumes took a 5% hit in Q4 because of a “one-off” disruption at an unnamed supplier that has since been resolved, CFO Jim Peters told investors Tuesday.
Peters described the firm as a “critical supplier providing a common platform of parts for multiple manufacturing locations and products.”
The issue was fixed in mid-January, but the finance chief noted that there were confidential “ongoing discussions” with the supplier, which prevented Whirlpool from sharing additional details about the disruption.
Dive Insight:
While Whirlpool did not disclose specifics, the interruption at the supplier took a toll on the home appliance company’s sales. Net sales fell 15.3% in Q4 and organic sales declined 10.8%, which the company attributed to the supply chain issues.
The disruption, coupled with a previously announced production reduction, also led to a $100 million hit to the company’s profits, CEO Marc Bitzer said on the earnings call.
The hiccup comes after Whirlpool spent two years working to make its supply chain more efficient and resilient amid the many challenges of the pandemic era.
In that time, the company slashed its active parts from 110,000 to 70,000 to reduce complexity in its supply chain, Bitzer said. He added that in the medium-term, Whirlpool management sees a path to getting that number down even further, to “well below” 50,000 parts.
The appliance maker has also “significantly expanded” into dual sourcing, putting priority on high-value strategic parts and components, according to Bitzer.
“But we still have a tail end of lower value parts that are single source,” the CEO said. “This will be our focus in the coming months and years.”
Looking to the year ahead, Bitzer said that “flawless execution of our supply chain” is one of Whirlpool’s top operational priorities, along with “very significant” targets for cutting costs. The company is eyeing $800 million to $900 million in potential cost reductions.
The two goals are closely related. As part of the cost cuts, Whirlpool expects to remove over $250 million in what Bitzer described as “premium costs and inefficiency in our supply chain operations.”
The company also expects cost reductions in raw materials of up to $400 million, with some help from easing inflation.
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