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.
Category Archives: Manufacturing
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.
Electrolux to discontinue production at Nyíregyháza factory in Hungary
Electrolux has decided to discontinue production at the Nyíregyháza factory in Hungary from the beginning of 2024. The company will take a restructuring charge of approximately SEK 550 million which will be reported as a non-recurring item affecting operating income for Business Area Europe in the first quarter of 2023.
The decision follows a review of production capacity needs including an investigation into the competitiveness of the Nyíregyháza factory, which employs around 650 people and manufactures refrigeration products. The strategic direction is to optimize the refrigeration production footprint from a cost perspective through both outsourcing and own-production leveraging Group scale.
The decision means that remaining investments in refrigeration products that are part of the earlier communicated global re-engineering investments of SEK 8 billion, which started in 2018, will be revised and redirected in line with the strategic direction of Electrolux.
Electrolux is exploring possibilities to divest the factory in Nyíregyháza and is committed to collaborating with relevant authorities and stakeholders to support its employees in the best possible way during this phase.
The cash flow impact is estimated to be approximately SEK 300 million, mainly in 2024-2025. The final operating income and cash flow effects will be determined by the exchange rate on the relevant recording dates.
EuroChef USA To Be Exclusive US Importer Of Lofra
Lofra Italy has announced its partnership with EuroChef USA as the exclusive US importer of the brand’s kitchen appliances. Lofra has been manufacturing high-quality Italian home appliances since 1956. Designed and manufactured in the hills around the city of Padua, each Lofra appliance is carefully designed and built with the high-quality standards of a “Made in Italy” brand.
Forza @KBIS
Forza, the ultra-premium Italian cooking appliances brand, spotlights its new 48-inch Professional Range Tops at the International Builders’ Show (IBS) and Kitchen & Bath Industry Show (KBIS) in Las Vegas, Nevada, from Jan. 31 to Feb. 2 with the American Gas Association in booth C2108.
“We are excited to add the 48-inch width to our lineup of professional range tops,” said Marco Guerzoni, Forza Director of Marketing and Product Development. “You can expect this handsome appliance to have the same high-quality power and radical Italian design that we showcase on each of our products.”
Ultra-premium Italian cooking appliances brand @ForzaCucina expands its range top line by adding a 48-inch model, which will be debuted at the 2023 International Builders’ Show in #LasVegas. @IntlBldrsShow #IBS2023 https://www.forzacucina.com/product-category/range-tops/
KEY FEATURES OF THE 48-INCH PROFESSIONAL RANGE TOP:
The 48-inch Professional Range Top features eight full brass burners—four front-range dual-flame burners that adjust from 685 Btu for simmering to a powerful 20,000 Btu, and four single-flame burners in the back that range from 2,200 to 12,000 Btu—for precise cooking control.
It is equipped with Forza’s continuous Infinito™ Grate System edge-to-edge cast iron grate system with an integrated bullnose – the industry’s largest continuous usable cooking surface.
It also comes with a fastback porcelain trim that provides a seamless integration into your kitchen island while increasing the usable cooking service even further for maximum efficiency.
The black porcelain spill tray makes cleanup simple while providing a dramatic aesthetic for the range top that emphasizes the brass burners, while the stainless-steel knobs with a red “racecar” stripe elevate your kitchen design.
Its bold form and style embody the soul of radical Italian design with the heart of an American muscle car, featuring unique angular racecar-inspired lines.
The new entry to the product line joins the previously released 30 and 36-inch models.
About Forza
Forza delivers dynamic Italian design with ultra-premium, professional cooking appliances. Designed and built in the heart of the famed Emilia-Romagna region in Modena, Italy, Forza appliances include professional gas ranges, dual convection electric wall ovens, professional range tops, high-performance ventilation hoods and a powerful, energy-efficient dishwasher. Forza is the American brand of parent company, Glem Gas, which has been producing high-performing appliances that embody the spirit of Italian craftsmanship for more than 60 years. For more information about Forza, visit forzacucina.com.
Arçelik Whirlpool update
During the presentation of the fourth quarter results, Arçelik communicated the name of the new company that acquired the assets of Whirlpool Emea. This was reported by the Market screener website which quotes Arçelik’s quarterly report presented to shareholders yesterday.
It will be called Beko Europe BV, it will be a company incorporated under Dutch law and will have a production capacity of 24 million household appliances a year. The 20 thousand employees (6 thousand of Beko, added to the 14 thousand of Whirlpool) currently work in the 2 Romanian plants of Beko, in the 14 plants of Whirlpool in Italy, Poland, Slovakia and the United Kingdom, in the 25 offices of the European subsidiaries of Beko and across 38 Whirlpool EMEA locations.
In addition to the brands of the Arçelik group, Beko Europe will own the Hotpoint, Indesit, Bauknecht, Privileg and Ignis brands and will have the license to use the Whirlpool brand for 40 years.
Groupe Brandt
Every 22 seconds: this is the frequency with which a cooking appliance was manufactured in Groupe Brandt factories in Orléans and Vendôme in 2022. 🎯 More than a slogan, sustainable French manufacturing is for the Brandt Group a commitment that continues in 2023 with: – Product innovations thanks to the unique know-how of their teams – Certifications and partnerships to promote French industry Origine France Garantie La French Fab – Services, tools and content to extend the life of our products:
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