Category Archives: Manufacturing

China’s Haier to build EUR 50 mln refrigerator factory in Romania

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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,

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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

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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

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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.

South Korean companies resuming op

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Samsung Electronics, LG Electronics and other Korean companies are sche-duled to restart their plants in China as businesses resume work after mandatory closures due to the deadly outbreak of Covid-19.

Automakers such as Hyundai, Kia, SsangYong and Renault Samsung, which had stopped their assembly lines in Korea due to a shortage of China-sourced auto parts, will also restart their operations.

However, The Korea Times said Korean businesses had only “partially” restarted and were unsure if operations would fully resume as the virus continues to spread.

Samsung’s home appliance manufacturing plants in Suzhou, China resumed work last Monday, while its Tianjin factory is set to reopen next week.

“Our business could have been disrupted if the Suzhou plant remained suspended,” a Samsung official said.

Although the Tianjin plant will restart its operations later than the Suzhou plant, any potentially negative consequences will be minimised as the plant is producing products only for consumers in the domestic Chinese market.

Miele increases turnover by 3.2%

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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.

Arçelik filed lawsuit against LG for patent infringement

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Arçelik A.S, Turkey’s leading brand of white goods as well as smaller household electronics, filed a lawsuit against LG Electronics and its subsidiaries for patent infringement concerning its “direct drive” technology in LG’s washing machines, said Finance Yahoo.

Arçelik is also the second biggest brand of electronic goods in Europe, selling its products abroad under the Beko brand. It had a turnover of 31.9 billion TL in 2019 and receives 70 percent of its revenue from their international markets. Their BEKO products make up one-in-five home appliances sold in Britain.

“Direct drive” is an Arçelik-developed technology which prevents damage to clothes. Arçelik was granted a patent which was filed in 1997, and claims that LG is using this technology without a license.

LG Electronics showed no effort to resolve these infringement issues even after Arçelik’s warning, leaving Arçelik with no choice but to file a lawsuit,

Virus angst spills over to Korean manufacturers

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The new coronavirus-triggered angst appears to be spilling over to the Korean corporate realm as the global supply chain is feared to face some disruptions amid the rapid spread of the novel coronavirus in China, industry watchers said Sunday.

With the new coronavirus killing more than 300 people in China so far, Beijing has recently decided to extend its Lunar New Year’s holiday in some areas of the country in what could be a move that can disturb the normal operation of South Korean firms with manufacturing bases there.

The extension of the holiday that originally started Jan. 25 was earlier announced only in Hubei Province in central China, where Wuhan, the epicenter of the new virus, is located but was later expanded to other areas as the number of patients skyrocketed at an alarming pace.
South Korea’s finance ministry earlier said its economy has not yet faced direct fallout from the spread of the virus, but the country’s exports are poised to face a setback should the spread of the virus not be contained soon, industry watchers said, as local firms with production facilities in China have been suspending or scaling back their operations in the world’s No. 2 economy.

South Korea’s top tech giant Samsung Electronics Co. decided to shut down the operations of its home appliances production line in Suzhou, eastern China, until next week in tune with the extended holiday.

LG Electronics Inc. and SK Innovation Co. also plan to put off the reopening of their Chinese production line until the end of next week.

LG Chem Ltd. said it has sharply lowered the operational level of its battery line in China as well.

Korean chipmakers and display makers, on the other hand, have been maintaining the routine operation over the holiday, although LG Display Co. said it is considering closing down its facilities depending on the development of the issue.

“We already secured enough inventory in preparation for the Chinese New Year’s holiday, but it is inevitable for us to face troubles if the situation is drawn out over a long period,” a SK Innovation official said.

No. 2 chipmaker SK hynix Inc. said South Korean firms will eventually face some disruptions in their operations and production if the issue is protracted.

Industry watchers said the rapid spread of the new coronavirus has already prodded South Korean carmakers to scale down their production as the supply of some auto parts has been disrupted by the spread of the new virus.

SsangYong Motor Co. earlier said it will suspend the production of its plant in South Korea through Feb. 12 amid a delay in the supply of wiring harnesses, a part used to supply power in an automobile.

South Korean carmakers depend heavily on China for the supply of the part.

“As many auto parts makers have relocated to China to cut costs, it will not be easy for them to return home,” said Lee Hang-koo, a researcher at the Korea Institute for Industrial Economics & Trade.

Numerous South Korean firms, including Samsung Electronics, have kicked off task force teams, but the companies are likely to continue to face uncertainties as the new coronavirus situation is changing every minute, industry watchers added.

Haier Leads Euromonitors Major Appliances Global Brand Rankings for 11th Consecutive Year

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Haier the world’s leading home appliance producer, has emerged as the top major appliances brand worldwide for the 11th year running, according to Euromonitor International’s 2020 Global Major Appliances Brand Rankings. The accolade follows Haier’s ongoing efforts to gain a global foothold by consolidating world-leading brands into its portfolio while accelerating its revolutionary IoT ecosystem.
Compiled annually by Euromonitor International, a leading global provider of business intelligence, the report ranks the world’s appliance brands by retail sales value. In addition to listing first for major global appliances, Haier ranked first for Refrigerators for 12 consecutive years, first in Washing Machines for nine years, first in Freezers for ten years and first in Electric Wine Coolers for 11 years.
“We are honored to again be the world’s top major appliances brand for the 11th year in a row. Haier is constantly striving to listen to consumers’ changing needs and adapt to them, while simultaneously harnessing cutting-edge technology to stand out in the market,” said Wang Ye, Vice President and General Manager of Smart Home of Haier Home Appliance Industry Group.
Haier’s dominance in home appliances is a result of an ongoing commitment to R&D, and its ability to adapt its business model to the latest technology and consumer trends. Over the past decade, the home appliance industry has radically transformed with the rise of the internet, IoT, AI and 5G. Rather than ride the trends, Haier has defined them with revolutionary products, from the Clean-Free washing machines to refrigerators with fresh storage boxes.
This is set to continue in the future: during its 35th anniversary, Haier revealed its next stage of development, which puts customization, globalization and its IoT ecosystem brand at the core of its strategy.
Always in pursuit of new ways to engage with consumers, Haier has also implemented its “RenDanHeYi” 10+N R&D model in the past decade — an open entrepreneurship platform that integrates quality global resources to meet the diverse needs of users.
In recent years, Haier’s desire to reimagine the future has only strengthened its position as the world’s leading significant appliances company. In the Industry 4.0 era, a new Haier has emerged to meet the increasingly sophisticated experiences demanded by consumers in the age of connected smart homes. Instead of manufacturing smart appliances, Haier engineered a smart home ecosystem that harnesses IoT and smart appliances to enhance the quality of life. In a company first, Haier launched its official Haier Smart Home app in 2019, which allows users to infinitely customize their smart home experience based on user scenarios, rather than products. A live stream video accompanied the app launch — within one day, Haier received over 31,337 orders for over 2,440 different home designs.