Electrolux AB, the Swedish maker of Frigidaire appliances, has announced that it’ll incur a bigger-than-expected financial hit from merging fridge and freezer factories within the U.S. amid delivery disruptions. This plant reorganization, combined with accounting adjustments and destocking at a key U.S. client, cut $70 million off fourth-quarter 2019 operating income, compared with a previous estimate of $25 million. Savings targeted for this year also will take until 2021 to materialize, with just a fraction coming in 2020.
Electrolux sees a price reduction of 200 million Swedish kronor ($21 million) next year, down from a previous estimate of about 800 million kronor. The savings are a part of a much bigger decide to revamp the factory setup, an attempt that has shutting a plant for cooking products in Memphis, moving U.S. refrigerator-production to a replacement site in Anderson, SC, and outsourcing production of vacuum cleaners in Hungary. the corporate still expects the measures to yield about 3.5 billion kronor in annual savings by 2024.
DNB analyst Christer Magnergard says the postponement of savings will cut about 8 percent from this year’s operating profit, which the issues Electrolux has encountered within the U.S. increase the danger of further disruptions to the efficiency plan. He said it’s “alarming” that the corporate was unaware of issues earlier which there’s a “clear risk” that the weak performance will still impact earnings through the primary half this year.
Electrolux is investing $250 million in automation and digitization of the plant in Anderson to exchange one nearby, and another slated for closure in St. Cloud, MN. The transition led to temporary capacity constraints that affected deliveries to some customers, which are expected to be resolved within the half , it said.
Europe’s largest appliance maker, Electrolux has been working to offset higher costs and currency moves by increasing prices and selling more higher-margin appliances. At an equivalent time, it’s investing heavily in new and more efficient manufacturing facilities with increased automation. within the third quarter of 2019, Electrolux took a charge of 1.6 billion kronor to finance cost-cutting measures that include almost 1,700 job cuts.
Korean Companies Halt Production Lines in India Due to Coronavirus
Korean companies operating in India have stopped their local production lines in line with the Indian government’s efforts to prevent the spread of COVID-19.
“Abiding by the Indian government’s decision, we will halt the operation of Noida Plant which produces smartphones and Chennai Plant that produces home appliances until the end of this month,” Samsung Electronics said on March 23.
The Indian government issued an emergency administrative order to temporarily suspend the operations of all business sites in Chennai except essential places such as hospitals and public offices. The deadline is the end of this month. However, the order may be extended pending the proliferation of the COVIOD-19 virus.
Samsung Electronics has steadily expanded Noida Plant, saying it will increase the annual smartphone production at the plant to 120 million units in 2020. Industry watchers expect that the plant shutdown will disrupt production of Samsung’s budget smartphones targeting India, including the “Galaxy M.”
LG Electronics will also stop operating production plants in Noida and Pune until the end of March. These plants produce home appliances such as washing machines. The plant in Pune also produces some smartphones.
Consumer electronics companies such as Samsung and LG have also hit a snag in overseas sales. “We will temporarily stop sales in stores for the safety of our customers and employees,” announced Best Buy, which operates more than 1,000 consumer electronics stores throughout the United States, on its website on March 23. “Instead, we have introduced a door-to-door delivery service for customers in an untact manner.” Best Buy does not provide installation services for large TVs and refrigerators by professional technicians due to virus infection concerns, which will hinder its normal sales activities.
Europe’s largest consumer electronics store, MediaMarkt, has also shuttered more than 850 stores in major countries since the middle of March. “In North America and Europe, not many customers use installation services for large home appliance unlike Korea, but if offline stores are closed, there will deal a blow to promotions of large home appliances and new products,” said an official at a household appliance company
Hyundai Motor also stopped operating the first and second factories in Chennai on the day. Hyundai’s Chennai plant produces 680,000 units of the Crete, the Santa Fe, the Eon, and the i20 annually. Kia Motors is also considering discontinuing production at its plant in Andhra Pradesh, India. Andhra Pradesh is not included in the Indian government’s business suspension, but Kia Motors is responding by reviewing a shutdown of the plant as it may be designated later depending on the spread of the novel coronavirus in the future.
The shutdown order sounded the alarm for POSCO. “We are placing in place a remotely working system and cooperating closely with the government of India,” said POSCO which decided to stop a processing center in Delhi and a processing center in Pune by the end of this month. Hyundai Steel’s coil mill and steel pipe manufacturing plant in Tamil Nadu, India, will also put production on hold during the same period
BSH Group temporarily suspends the production of several factories in the face of falling demand
BSH, the consequences of coronavirus spread also are impacting. the corporate is experiencing a big drop by demand, affecting most product categories and markets. during this context, the BSH Group’s Board of Directors has decided to suspend production for an expected period of three weeks. Thus, BSH Hausgeräte GmbH will temporarily suspend its production operations in its factories in Europe, Turkey and North America. the corporate still has the power to deliver products to consumers.
Disruption of production at factories in Europe will begin on March 28, 2020. this might even have an impression on employees who aren’t directly linked to production or other functions and locations.
This measure is being coordinated and implemented with the respective workers’ representatives counting on the country and site and in accordance with the present legal framework. BSH will still implement appropriate measures to make sure the simplest protection for all employees against the danger of infection by the coronavirus.
The company will inform customers, suppliers and other companies about the planned procedures.
BSH will employ this temporary suspension of production, to be prepared to satisfy the demand of its clients on time and within the absolute best way when the markets recover
Samsung Launches High-Performance Jet™ Cordless Stick Vacuum Cleaner
New cordless vacuum cleaner combines powerful performance and convenient features to deliver the ultimate solution for hygienic cleaning
Samsung also introduces the all-new Clean Station™, an industry-first disposal solution that automatically empties out the Samsung Jet’s dustbin today introduced a new lineup of the Samsung Jet™ cordless stick vacuum cleaner, along with a compatible Clean Station™ that can deliver the ultimate end-to-end cleaning solution for the home. The new Samsung Jet™ has great usability and can generate up to 200W1 suction power. Samsung’s latest cleaning products will be launched in Southeast Asia in March, followed by the U.S., Europe, China, and CIS regions.2
“Our strong commitment to create vacuum cleaners that offer a differentiated cleaning experience to consumers is perfectly represented in the Samsung Jet™ series,” said Eugene Chung, Vice President of the Global Product Management Group at Digital Appliances Business, Samsung Electronics. “Despite the Samsung Jet’s remarkably powerful suction capabilities, its body has been designed to be lightweight, allowing our customers to enjoy the Jet’s easy-to-use features more comfortably.”
Powerful cleaning solution
The Samsung Jet’s capabilities are made possible by its Digital Inverter Motor and the Jet Cyclone system. The Digital Inverter Motor incorporates an ultrasonic welded cover and diffuser that optimise airflow. It allows Samsung Jet™ to generate a significant level of suction power. Meanwhile, the Jet Cyclone system features nine separate cyclones, each with 3-way multi-air inlets to minimise loss of suction power while securely trapping fine dust particles that are sucked into the vacuum cleaner.
Users can also enjoy longer cleaning times with the Samsung Jet’s high-capacity battery. The long-lasting battery addresses consumer needs for a reliable vacuum cleaner that can maintain suction for up to one hour3. And since the battery can easily be removed and replaced with a spare, users can clean for up to two hours3 in one session if needed.
The Samsung Jet™ also comes equipped with a diverse array of highly efficient motorized brushes that provide various cleaning solutions to match different consumer lifestyles, cleaning habits, and floor types.
Hygienic features for healthy habits
Samsung Jet’s best-in-class 5 Layered HEPA Filtration System reflects Samsung’s commitment to ensure the safety and health of its users. Verified and certified by the British Allergy Foundation (BAF), the high-performance filtration system captures dust particles and allergens that normally would escape back into the air through the vacuum exhaust4, providing a cleaner indoor environment.
The Samsung Jet’s Washable Dustbin and One Click Detachable Brush Drum are also key features of hygienic and convenient maintenance as they can be fully washed without hassle. The dustbin can be removed effortlessly, so users can simply tip out the dust and wash all the separate parts for a thorough clean. The internal rotating drum located on the head of the vacuum cleaner is also detachable with just a click, which means it can be washed separately as well.
Clean and convenient disposal solution
The newly unveiled Clean Station™ is an innovative dust disposal solution that automatically empties out the Samsung Jet’s dustbin to provide users with a simpler way to manage their Samsung Jet™. The Clean Station™ incorporates a highly advanced dust filtration system that directly solves the issue of having dust fly everywhere while disposing collected dust from the vacuum canister.
Users simply need to place the dustbin on top of the Clean Station™ to automatically empty out its contents. The Clean Station™ also has an Anti-Dust Emitting Structure that has been verified by Underwriters Laboratories (UL) to prevent ultrafine dust from getting released back into the air while the dustbin is being emptied out.
The Clean Station™ even features Air Pulse Technology, which pulsates the air in the dustbin to shake off trapped dust. The dust is then collected in a micro bag inside the machine, which can easily be replaced every two to three months.
Effortless and convenient design
The Samsung Jet™ incorporates various features and design aspects that make the cleaning process more convenient. For example, the integrated digital display shows the machine’s status, such as power level and brush type. It also alerts users if there are brush bar problems or blockages. This helps users maintain their vacuum cleaner in optimal conditions.
The Samsung Jet’s 2-in-1 Charging Station can be adjusted to suit any home lifestyle by allowing users to store and charge their vacuum cleaner more conveniently. The charging station can now be wall-mounted, so users who need to save space can take advantage of this option. It can also just be used as a stand-alone charger for more flexible storage.
The Samsung Jet’s lightweight design ensures maximum usability and reduces strain on users’ wrists. The handheld body weighs just 1.66kg for the Jet™ and 1.48kg for Jet Light™.
Chinese Factories Face New Threat: US Anti-Virus Controls
Factories in China, struggling to reopen after the coronavirus shut down the economy, face a new threat from U.S. anti-disease controls that might disrupt the flow of microchips and other components they need.
The shock threatens to set back the ruling Communist Party’s efforts to revive the world’s second-largest economy after it declared victory over the outbreak. It would add to pressures on global business activity as Western countries close workplaces, limit travel and tell consumers to stay home.
Chinese manufacturers assemble more than 80% of smartphones for Apple, Samsung and other brands, half of the world’s personal computers and a big share of home appliances.
China’s Hisense to close its European factories over coronavirus
Chinese home appliances maker Hisense (will close all its European factories from March 23 to April 4 in response to the coronavirus outbreaks in Europe, Slovenia-based Hisense Gorenje said on Friday.
6thIt said the company has sufficient materials to continue production but has decided to stop it to help reduce the spread of the virus and protect the health of its employees.The company has factories in Slovenia, Serbia and the Czech Republic producing washing machines, dryers and cookers.Hisense Gorenje is among the five largest exporters in Slovenia. The country, which borders Italy, Austria, Hungary and Croatia, has so far confirmed 341 coronavirus cases, and one death.
6thIt said the company has sufficient materials to continue production but has decided to stop it to help reduce the spread of the virus and protect the health of its employees.The company has factories in Slovenia, Serbia and the Czech Republic producing washing machines, dryers and cookers.Hisense Gorenje is among the five largest exporters in Slovenia. The country, which borders Italy, Austria, Hungary and Croatia, has so far confirmed 341 coronavirus cases, and one death.
Electrolux adapts manufacturing to offset difficulties with supply
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.
Liebherr launches first Flagship Store in Asia Pacific | SGD35,000 Bespoke Luxe Refrigerator Showcasing in Singapore Launch Party
German Cooling Appliances Specialist launches its luxury products in Asia The store is a showcase of heritage and excellence that is reflected not only in the engineering but also in the design of the appliances for over 60 years. Headquartered in Singapore, Liebherr will be bringing to Asia its commercially popular high-end refrigerators, freezers and wine cabinets.
On top of its forte and niche in state of the art cooling systems, its bespoke service enables consumers to customize their appliances with sizing options, functionality options, luxury accessories and more.
Asia is home to the largest pool of growing wealth in the world where luxe living serves as a norm in rising economy powerhouse like China and India. In 2018, Asia’s ultra-wealthy population grew by 18.5 percent and their total wealth shot up by 26.7 percent, twice the rate seen in the U.S., the World Ultra Wealth Report 2018 found. The combined riches of Asia’s ultra-wealthy now total a staggering $8.365 trillion, based on analysis of Wealth-X’s database of wealthy individuals.
For more than 70 years, the Liebherr Group stands for a large evolving range of sophisticated products and services. The Domestic Appliances division was founded in 1954 and the family business has operated under the outstanding stewardship of the Liebherr family. Every part within a Liebherr appliance is produced and assembled in their European factories till date. Please see Appendix A for history of Liebherr.
Mr Steffen Nagel, Managing Director Sales & Marketing of Liebherr-Hausgeräte GmbH says “We’re excited to enter the Asian market through Singapore and bring to the world top German products
LG Electronics to Launch Intelligent Direct Drive Washing Machine
LG Electronics will launch the LG Trom Washing Machine ThinQ, an artificial intelligence-based direct drive (DD) washing machine, in the Korean market on March 12.
The new washer senses the weight of clothes and uses big data to check the material of the clothes and selects the optimal washing method. For example, in the case of a delicate textile, a user can select shaking and kneading hand motions to protect the cloth.
Consumers can use convenient functions by connecting the new product to LG ThinQ, a home appliance management application, using a Wi-Fi connection. The smart pairing function of LG ThinQ allows the washing machine to send washing course information to the LG Tromm Dryer Steam ThinQ launched on March 5 and the dryer sets up a drying course.
Its smart care feature allows the washer to remember your laundry habits and set your favorite washing options. This function analyzes the last five washing methods used and selects options used three times or more. In addition, the washer is convenient to use as it sets an optimal washing option by taking into consideration weather and fine dust information.
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.
