Electrolux believes there is a considerable risk of a material financial impact during the first half of 2020.
In the fourth quarter interim report 2019, published on January 31, 2020, the company said that an extended period of supply chain disruptions in China related to the spread of the coronavirus (COVID-19) could potentially have a material financial impact on Electrolux.
Now, given the rapid spread of the virus, impacting markets where Electrolux has a significant presence in terms of production and sales, the company believes the risks related to this have increased materially. These risks include supply chain disruptions, government countermeasures and changing consumer behavior. It is currently not possible to predict the duration or scope of the crisis, and therefore the full potential impact.
“We’re stepping up our efforts to encourage more employees to work remotely and we’re reshaping the way we work at manufacturing sites in highly impacted areas to ensure the health and safety of our people. At the same time, we of course want to safeguard the needs of our consumers and trade partners,” says Jonas Samuelson, President and CEO of Electrolux, in a press release.
The initial outbreak in China, where Electrolux sources significant volumes of finished products and components for all its business areas, has caused delays in deliveries, higher logistics costs and somewhat lower demand in East Asia in the first quarter 2020. However, the company says that it has worked to mitigate the impact and the situation among Chinese suppliers is now steadily improving. Based on these developments, Electrolux does not currently expect material effects from this alone going forward.
The coronavirus outbreak in northern Italy is also impacting the Electrolux Group. Electrolux consumer business has five manufacturing sites in Italy, accounting for around one quarter of its European production volume and approximately 10% of global volumes. Furthermore, Electrolux purchases components for sites across Europe, but also other parts of the world from suppliers in northern Italy. This of course translates to that there may be supply chain disturbances because of temporarily reduced industrial activity in the region.
Electrolux says that it from the very beginning took extensive measures in Italy to ensure the health and safety of its employees, and the spread of the coronavirus has not yet caused major disruptions to its operations in the country. The situation is however developing rapidly, and the company has now implemented additional measures to adapt manufacturing in Italy to a reduced production pace.
The reduced pace will also adapt the output of products to be more in line with expected sales volumes in the near future.
Electrolux operations in France has also been hit heavily by the pandemic. Since March 15, 2020, for example, French authorities have increased their countermeasures, and Electrolux Professional has started to experience difficulties in receiving components to, as well as in the outbound flow of products, its manufacturing units in France. As a response to this the company is implementing additional measures to adapt manufacturing at the affected sites to reduce production, including temporary closures.
Category Archives: Manufacturing
Miele increases turnover by 3.2%
After realignment of its business year, Miele reports sales of € 2.24 bn for July to December 2019 stub business year
New subsidiaries launch with smart business models
In the second half of 2019, the Miele Group achieved a turnover of € 2.24 bn – 3.2% more than in the previous year. ‘This is once again evidence that we are well positioned with our products and services to increase turnover and gain market shares under challenging conditions and intense competition in the marketplace’, according to the Executive Board of the world’s leading manufacturer of premium domestic appliances. During the current year, this course for growth will be further consolidated – for example with kitchen appliances from the new Generation 7000 series, which will set standards in the market with numerous exclusive innovations. On December 31, 2019, Miele employed a workforce worldwide of 20,478 – more than ever before.
This publication of half-time figures is due to the fact that the Miele Group has changed its business year to coincide with the calendar year (instead of running from July 1 to June 30). This results in a one-off stub year. In particular, large European markets such as Austria, Switzerland, the Netherlands, Italy and, after a long Brexit-related dry spell, Great Britain, contributed to this positive development. In the highly contested German market, Miele achieved turnover growth of 2.7%. In contrast, business in Hong Kong is suffering from political unrest. In China, state intervention has resulted in a subdued real estate market – also impacting business with high-quality kitchen equipment.
Amongst the product groups, above all washing machines, tumble dryers and vacuum cleaners contributed most to sales growth. In laundry care, numerous detail improvements ensure increased user convenience: These include shorter programme cycles, the ability to add forgotten items of laundry at any time throughout the cycle and even the energy-efficient washing of individual garments. In the booming sector of rechargeable handsticks, the Triflex HX1 has got off to a very successful market start. Across all product groups, campaign models marking 120 years of Miele (Series 120) resulted in significant additional impetus. With its built-in appliances from the new Generation 7000, Miele is reasserting its leading role in the fields of innovation, design and lifestyle pleasures in the kitchen. With 3,000 model versions spanning 15 product groups worldwide, now off to a very promising start in almost all countries, this amounts to the biggest product launch in the history of the company.
Above-average growth during the reporting period was recorded by Miele Professional with machines and services for commercial operations, medical facilities and laboratories, and its Italian medical technology subsidiary Steelco. Steelco is in charge of the aspiring hospital project business within the Miele Group. Compact commercial washing machines and dryers for small businesses (Little Giants), which have been on the market since last year with a completely new model series, represent a further growth driver. In total, Professional turnover grew by more than 4%.
New impetus for growth and innovation
In order to exploit further sustainable growth potential, Miele has, as reported last October, undergone reorganisation – for example with 8 independent business units, remapped sales territories and a new location devoted to digital marketing which is currently being set up in Amsterdam (Digital Hub). The new production plant for washing machines, built by Miele in the Polish town of Ksawerów, has commenced operations on schedule. Miele Venture Capital GmbH, which brings together Miele’s stakes in promising start-ups, has further expanded its activities.
During the period under review alone, two new 100% subsidiaries were added to the portfolio: With the takeover of the business operations of Agrilution GmbH, Miele entered the future field of vertical farming – with stacked and digitally connected Plantcubes sporting an elegant design for private homes. With a minimum of effort, these offer the ideal growing conditions for, say, greens and herbs. Miele Operations & Payment Solutions GmbH offers a unique, app-based solution covering the furbishing, organisation, servicing and billing in shared laundry facilities (appWash). This can even go as far as assuming responsibility for the entire operation. This is aimed for example at student hostels, housing associations, multi-unit dwellings, campsites and launderettes. With these and other activities, Miele is pursuing its strategic goal of continuing to expand its portfolio and grow with innovative products and digital services which meaningfully complement its core business.
As per December 31, the Miele Group had 20,478 employees on its payroll. This amounted to 163 employees, or 0.8%, more than in the previous year. In Germany, Miele employs a workforce of 11,061, down 209 on the previous year.
Hisense efficiency
Hisense wants to showcase its most advanced and efficient household products, with the intention of respecting the environment. Therefore, it combines the best design, the latest innovation and the greatest efficiency to bring the latest advances to the users and favor the saving of energy consumption.
The company reinvests a significant amount of annual revenue in its 12 R&D centers around the world for the development of more efficient products and capable of leading an increasingly sustainable path. In addition, the company implements in its facilities recycling systems that contribute to the improvement of its profitability and allow the reuse of materials to reduce the environmental impact.
Among Hisense’s contributions to greater energy efficiency, the firm recommends regulating the temperature properly both at home and in the workplace. In this sense, determining the ideal temperature is easier thanks to the integration of wi-fi in models such as Brissa CA70BT01 . It is also important that they work with R-32, a pure refrigerant gas that has a low Atmospheric Heating Potential.
Hisense appliances, such as the WFGS1016VM A +++ washing machine (-20%) or the HS6130W Dishwasher , are committed to an A +++ rating. And the Inverter technology of products such as Brissa CA50XS01 can save energy and extend the life of appliances.
A connected home is a more responsible home, so the new Hisense appliances have ConnectLife, an application capable of offering reminders for the maintenance of registered devices, advice on food preparation and other useful household tricks. In addition, it integrates services and products offered by external partners, such as Alexa, Google or Siri.
Finally, it is essential to avoid bad habits of using appliances. For example, introducing hot foods into the refrigerator means 5% more energy consumption for each degree you need to cool. When cooking, the heat of food must be maintained at all times. A good example is the new Hisense induction hob, such as I6456C . Thanks to the programs it incorporates, you can keep the residual heat and keep the dishes warm and combine different cooking zones to create a single large cooking area.
Haier Reopens Domestic Factories and Resumes Production at Full speed
Following the strict measures put in place for the control and prevention of Covid-19, Haier Smart Home Co the world’s leading home appliance producer, has announced that all domestic factories in China have returned to full capacity as of February 25. The announcement comes after Haier’s continued efforts to maintain its global capacity, which saw the producer achieve an overall guarantee rate of over 90% on overseas orders during the outbreak.
Haier Smart Home Reopens Domestic Factories and Resumes Production at Full speed.
Haier Smart Home Reopens Domestic Factories and Resumes Production at Full speed.
Despite limited capacity brought on by Covid-19, Haier maintained normal production levels as a result of its strong global supply chain and rapid response to the epidemic. With a complete international operation and supplier system, as well as supplier resources spanning the Americas, Southeast Asia, South Asia and Europe, Haier fulfilled 99.8% of orders throughout February 2020, with 60% of products manufactured in local factories overseas. Meanwhile, Haier’s logistics team closely monitored changes in global ports and shipping policy alerts and adjusted its resources and logistics plans accordingly to ensure the timely shipment of all orders.Since February 17, all of Haier’s domestic factories – except three in Wuhan – have resumed production with additional strict measures to prevent and control the spread of the epidemic, on top of those recommended by the Chinese government. 10 Haier industrial parks have been recognized by the local government and seven have been highlighted by Chinese media as leading examples for their epidemic protection and prevention work. As of February 25, the three Wuhan factories have also reopened with similar measures in place to keep workers safe.In addition to reopening factories, Haier’s key domestic suppliers are gradually resuming normal business operations. To date, more than 90% of suppliers have reopened their doors with an 80% work resumption rate and a 95% guarantee rate. The guarantee rate is expected to reach 100% by the end of February.Further to its global supply chain, Haier was able to lessen the impact of Covid-19 due to its early adoption of intelligent manufacturing. Across its 122 factories, Haier has integrated a variety of automated production processes including automatic boxing and bagging, refrigerator wrapping and gluing, as well as product-specific processes for washing appliances and air conditioners.Haier Smart Home’s five sectors have also introduced 108 flexible production lines using integrated automation solutions and applied intelligent technologies such as AI, big data analysis, 5G and AR to help conduct a range of factory tasks, including visual product inspections for refrigerators, measuring the noise of washing machines, detecting unusual sounds in air conditioners, AR-assisted remote equipment maintenance and more. These intelligent manufacturing processes and technologies enabled Haier to continue normal production and logistics during the outbreak, as well as improving overall line efficiency and reducing staff turnover.
Taurus expansion
Grupo Taurus, a leading Spanish company in the small appliance sector with more than 200 million turnover, announces the acquisition of the renowned French company Supra. The operation is another step of the Taurus group in its expansion and growth plan in Europe, also reflected in the acquisition of the license rights of the Black + DeckerTM brand in 2018.
Supra, with almost 150 years of history, is a benchmark in innovation and sustainability and a precursor to Insert technology internationally. Its product range covers the entire range of heating, both portable electros as stoves and insert fireplaces. The brand is an expert in pellet-based combustion stoves (Biomass), an ecological solution for thermal air conditioning needs. The main brands of the group are Supra and Richard Le Droff, premium brand specialized in chimneys and Inserts.
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With this acquisition, the Taurus group meets a triple objective:
On the one hand, it strengthens and grows its position in the French market, where it already participates with its subsidiary White & Brown, which markets its wide range of small appliance products: Taurus, Solac and especially the Taurus-Alpatec brand, highlighted in the sector of portable air conditioning.
In addition, the operation is a firm commitment of the group to consolidate in the renewable and sustainable energy sector, since Biomass and Insert heating combustion is an efficient and highly ecological option.
Finally, the acquisition of Supra is also a strong commitment to European manufacturing “made in France”. From its headquarters in Obernai (Alsace), most of its stoves and fireplaces are designed and manufactured and it also has an important R&D center that, in addition to those already existing in Spain and in other Group subsidiaries, They will bring great innovations and sustainable solutions to the entire product range.
In its constant commitment to strengthen its European presence, the Taurus group adds the Supra company to the list of its subsidiaries in France, Portugal and Italy, and soon in Germany. This together with the subsidiaries of the group that are located in Mexico, South Africa, Morocco, India, China and Peru, makes it have an international presence and be a worldwide reference in the small appliance sector.
Tecnoinox obtained the SASO Quality Mark
Italian company Tecnoinox, that since 1984 has been designing and manufacturing equipment for the professional kitchen is the first Italian manufacturer in its sector to obtain the Quality Mark certification by SASO (Saudi Standards, Metrology and Quality Organization , government certification body of Saudi Arabia). Thanks to this certification the company’s models can enter to the Saudi Arabia, enforcing its presence and dedication in the Middle Eastern market. All the over 200 products selected from the Tecnoinox catalog and subjected to analysis have been approved. «During 2019 – Riccardo Giacomini, Tecnoinox Technical Director said – the government technical body of the Saudi Arabia Kingdom, SASO, introduced the Quality Mark certification obligation to regulate the entry of gas equipment into the country. It was a complex, extremely rigorous certification process that Tecnoinox has fully passed, standing out first in the national panorama for quality and ability to respond to the needs of markets that are changing and evolving.»
Martina Giacomini, Commercial Director of Tecnoinox, also expresses her satisfaction: «we are already present in many markets in the Middle East and it is strategic for us to complete consolidate the commercial relationships in Saudi Arabia. The high quality of the processes, products and staff has allowed Tecnoinox to obtain certification before any other Italian manufacturer and therefore, from today, is the only Italian manufacturer of professional gas cooking equipment authorized to export to the Kingdom of Saudi Arabia.»
The new version of Erika by ARAN Cucine will be displayed at EuroCucina 2020
The Erika kitchen, a best seller of ARAN Cucine, has been restyled for the next edition of EuroCucina. The brand has followed the the latest furnishing trends, that suggest functional and versatile solutions, clean and reassuring lines, neutral and elegant colors. To meet all tastes and respond to different market needs, ARAN Cucine offers customizable models, capable of adapting to any living context. Erika catalog, in fact, is enriched with new elements, transforming the model into a real ‘furniture system’, with modular solutions and over 41 finishes.
A composition designed to facilitate the movements of those who live it and ensure maximum space optimization without sacrificing design, provides a large multipurpose island, columns and shoulder system. To create a game of full and empty volumes, the large and capacious storage elements alternate with open, decorative and immediately accessible modules. The Jhon doors in black aluminum with gray smoked glass visually lighten the structure of the island block, equipped with the new Move-it snack: a mobile top that slides along the diagonal and that can be a dining table and then be brought back flush with the island, limiting its size.
But the big news is the introduction of elements with soft and circular lines. The more sinuous version of Erika is in fact characterized by creative and ergonomic solutions: the rigorous design of the columns – with the new vertical handle – and the wall units combined with the Fill bookcase harmonize with the curved peninsula.
China’s Haier to build EUR 50 mln refrigerator factory in Romania
Chinese group Haier, one of the largest manufacturers of household appliances in the world, will invest over EUR 50 million in a refrigerator factory in the town of Ariceştii Rahtivani in Prahova county, north of Bucharest, Ziarul Financiar reported.
This production unit will create over 500 jobs and will have a maximum production capacity of 600,000 refrigerators per year.
By comparison, the Arctic factory in Găeşti, Dâmboviţa, owned by Turkish group Arcelik, has a capacity of 2.6 million units per year, being the largest refrigerator factory in Continental Europe.
Samsung Electronics created an in-house technology platform unit and named a new chief for its home appliance business in the company’s latest reshuffle,
Samsung Electronics created an in-house technology platform unit and named a new chief for its home appliance business in the company’s latest reshuffle, corporate sources said here on Thursday.
Samsung combined its in-house tech units related with Artificial Intelligence (AI), Internet of Things (IoT) and big data solutions to set up a new tech group, tentatively named “next-generation platform centre,” Yonhap news agency reported, citing company officials.
The centre will be headed by Chung Eui-suk, an executive vice president who is best known for leading the development of Samsung’s AI-based digital assistant, Bixby. The South Korean tech giant also appointed Lee Jae-seung, former Consumer Electronics (CE) business division development team leader, to head its home appliance business.
Previously, Kim Hyun-suk, President and CEO of Samsung’s CE business division, co-held the title as home appliance business chief. It was revealed in Samsung’s senior executive reshuffle on Monday that Kim no longer heads the company’s home appliances business, although he retains his CEO position for Samsung’s CE business division.
Samsung
Samsung Electronics created an in-house technology platform unit and named a new chief for its home appliance business in the company’s latest reshuffle. Wikimedia Commons
Lee Won-jin, an executive vice president who leads the service business team at Samsung’s visual display unit, will serve the same job for the company’s mobile business unit. The move will allow Lee, former managing director at Google Korea, to focus on developing contents services for both mobile phones and TVs.
The latest reshuffle follows changes to leadership at Samsung on Monday. Earlier the company named a new mobile business chief, and promoted 162 executives.
A new way to access the cooker oven
With the designer Wesley Mendez, Whirlpool redesigns the way the oven door opens on the company’s new freestanding range platform: not downward but to the side. What resulted is an optional side-swing door on a new 30-inch freestanding range. Mendez, who is based at Whirlpool Corporation’s Global Consumer Design Offices in Mexico, said the distinctive feature evolved after seeing data indicating a shift in consumer buying behavior in Latin American countries. In response to growing interest in using the oven on a freestanding range and meeting consumers’ changing needs, Mendez said he and his team created a new solution to make the oven cavity more inviting for consumers. “We thought it would be more approachable if we changed the way the door opens – Mendez explained -. Like a refrigerator, when you open the door, it’s a welcome for the consumer. You can get really close and you can have complete control of what happens in the rack”. The challenge of redesigning the oven door was then posed to Whirlpool Corporation’s Global Product Development team. “We had to translate a high-level concept to a manufacturable design”, said Ramiro Ruthes, Whirlpool Corporation System Integrator Leader for Freestanding Ranges. He led fellow engineers in the construction of a new door that is able to swing more than 100 degrees from the opening of the cavity. He explained the door also includes a step on the hinge to hold it clear of consumers while they’re accessing the oven. “One of the main requirements was to develop the side-swing door using the same product platform and most of the parts of the current drop-down door”, Ruthes said. Reengineering the oven door wasn’t the only focus for the Whirlpool teams behind the new freestanding range. They also improved the ergonomics and finishes of the handles and knobs. The burners are more efficient and the grates have been strengthened. Whirlpool introduced the side-swing feature to markets in Mexico in the third quarter 2019. Additional rollout is planned in Peru, Ecuador, and Colombia as well as markets in Central America and the Caribbean in the first quarter 2020.
Mexican Fridge Maker Mabe to Phase Out HFCs in 2020
Mabe, a home-appliance manufacturer based in Mexico City, Mexico, has announced a complete phase out of all HFCs from its refrigerator production plants by the end of 2020.
The announcement came at a meeting held the week of February 3 in Mexico City, hosted by the Kigali Cooling Efficiency Program (K-CEP) and Iniciativa Climatica de Mexico (ICM), to discuss approaches for advancing efficient, climate-friendly cooling in Mexico.
Mabe is also committed to improving the efficiency of its refrigerators between 10% and 25%. “With K-CEP funding, Mabe has completed the design, manufacture and testing protocols for energy-efficient compressors that will be used in all refrigerators in Latin America,” said Pablo Moreno, Head of Corporate Affairs at Mabe, in a statement. “This monumental commitment of Mabe with both efficiency and climate-friendly substances sets an example in the region and globally.”
The company, he added, is “providing a success story that highlights to policymakers that low-GWP transitions coupled with improvements in energy efficiency can occur rapidly and at scale in order to ratify and exceed international agreements.”
Also at the conference, MGM Innova Group — a climate finance group that specializes in developing and financing sustainable energy and efficient cooling projects in Latin America — announced that, with support from K-CEP, it is working on a large-scale residential and commercial refrigerator replacement program that supports the transition to low-GWP refrigerants and high-efficiency appliances in Colombia; the group is working to structure a similar program in Mexico.
“Commitments from Mabe show how both industry and government can lead by example to unlock transformative solutions that scale efficient, climate-friendly cooling in order to fight climate change, reduce pressure on government subsidies and improve economic well-being for citizens,”said Alfredo Nicastro, SVP Operations and Sales at MGM Innova.
“Over the coming decades, Mexico’s cooling demand is forecasted to drive over 25% of the country’s total increase in carbon emissions, the highest share projected for any country in the world,” said Jessica Brown, K-CEP Director. “This is why K-CEP has made Mexico a priority and why we are tackling the issue from all angles – through policy, finance, industry, and non-regulatory programs.
Mabe is a Mexican company which has been manufacturing domestic appliances for over 70 years . The company had 19,000 employees in 2017, having grown to be one of Mexico’s biggest employers. Mabe is the market leader in domestic appliances in Latin America and North America. It is now one of the largest manufacturers of large domestic appliances such as refrigerators, washing machines and cookers which can be found in stores from Argentina to Canada. The factory in Mexico is located in a region which is enjoying rapid economic growth and where many high-tech manufacturers are based. A large number of USA companies have established their high-tech production in this region. In 1987 Mabe signed a strategic alliance with General Electric Appliances (GE Appliances) to work together on the development and production of major domestic appliances.
The two companies opened a factory together in Celaya in Mexico in 2000. Since then virtually all ‘No Frost’ refrigerators – such as side-byside, bottom freezers and top freezers – for the US, European and the Middle East markets have been manufactured in Mexico.
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