Tag Archives: Arçelik

Arçelik, among the most sustainable companies

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Arçelik A.Ş , a multinational appliance manufacturer that operates 12 brands, including Beko , has obtained recognition in the 2024 Global 100 Index by Corporate Knights for the fourth consecutive year. The company has been positioned at number 60 in the index, and in first position in the household durable goods industry.
This recognition reflects Arçelik’s continued commitment to sustainability and its sustained technological investment over the past year.

Arçelik strives to improve all its processes taking into consideration its ambitious sustainability goals for 2030. These include reducing water consumption per product by 45%, increasing the recycling ratio, reusing water to 70% and increasing the proportion of recycled plastic in products to 40%. Along this path, Arçelik aims to invest a minimum of 50 million dollars in energy efficiency and renewable energy projects, as well as make use of 100% green electricity in all factories in the world, taking into account the availability of the countries

Arçelik got the highest score in the DJSI

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Arçelik obtained, for the fifth consecutive year, the highest score in the Dow Jones Sustainability Indexes (DJSI), in the sector of household durable goods companies, with the result of 86/100 in the S&P Global Corporate Sustainability Assessment. This is the main global reference point on the sustainability front: based on the results obtained, companies are selected to appear in the Dow Jones Sustainability World Index, which evaluates and rewards best performing companies in terms of sustainable attitude, based on economic, environmental and social criteria.

In a difficult year like 2023 – commented Hakan Bulgurlu, CEO of Arçelik – our intent was to remain faithful to our vision of sustainability, despite the headwinds. Our dedication to building a more aware and responsible world is the underlying theme of all our activities. This prestigious recognition is a new confirmation of our leadership in sustainability and rewards our commitment.

Arçelik warning

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Arçelik, has warned that next year will be “very tough” for Europe’s home appliance market as persistently high energy prices and rising borrowing costs hit consumers. 
Arçelik expected the European appliances market to shrink 5 per cent on a unit sales basis in 2024, said chief executive Hakan Bulgurlu. He added that the contraction could reach 10 per cent “if things go bad”.We’re predicting very, very low [economic] growth for Europe as a whole,” Bulgurlu said. He pointed to Germany as a particular weak spot, saying Europe’s economic powerhouse was “really slowing down”Arçelik’s revenue in Europe was steady at €787mn in the third quarter of this year compared with the same period in 2022.

Beko Egypt factory update

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Beko Egypt, a subsidiary of Turkish white goods conglomerate Arçelik, will open its first factory in Egypt early 2024 instead of the fourth quarter of this year as previously announced.
The factory, located in the industrial city in the 10th of Ramadan area, spans an area of 114,000 square metres, and is being developed at total investment exceeding $100 million, according to the company’s press statement.

EU antitrust approves Whirlpool-Arçelik merger

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The European Antitrust has approved the merger of Whirlpool ‘s activities in Europe with those of Arçelik into Beko Europe . European Commission officials believe that the union of the former Whirlpool EMEA brands with Turkish ones does not lead to dominant positions.

The start of the operation announced in January 2023, however, must wait until the spring of 2024 when the English Antitrust Authority will complete its in-depth investigation having detected in an initial analysis the risk of a significant reduction in competition, especially in some areas of the market .

Whirlpool confident of a ‘green light’ also from London
Hailing the EU Commission’s decision, Whirlpool said it was confident that the CMA, at the end of the investigation, would also agree with the assessments expressed at the European level. However, the operation will be carried out, at worst, giving up access to the English market for some brandsThe Whirlpool-Arçelik operation in brief
Subject of the agreement: The agreement includes Whirlpool’s 38 European subsidiaries and 9 production sites in Italy, Poland, Slovakia and the United Kingdom, as well as Arçelik’s 2 production plants in Romania and its 25 European subsidiaries. Together, this will result in a production capacity of approximately 24 million white products per year.

Contractors . Shareholders of the new company are Whirlpool Emea Holdings LLC and Ardutch, a wholly owned subsidiary of Arçelik, a Dutch holding company through which Arçelik controls its activities in Europe. The deal will see both Ardutch and Whirlpool transfer their European subsidiaries to new Chinese company Beko Europe.

Subdivision of shares. After these transfers, it is expected that 75% of the new company will be allocated to Ardutch BV and 25% to Whirlpool. The final post-closing ownership ratio will be determined taking into account the parties’ respective 2022 EBITDA, net asset values, net debt and net working capital.

Arçelik profit

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Arçelik has published excellent data relating to the third quarter of 2023. The Turkish financial site Borsatek reports a net profit of 1 billion Turkish liras (34 million euros): +198% compared to the third quarter of 2022 (an annual inflation of 65% must be considered ). Ebitda grew by 120% to 6.4 billion Turkish liras.
Consolidated revenues increased 70% year-on-year in line with forecasts, to TL 58.2 billion (nearly 2 billion euros).
Despite persistently weak demand conditions in international markets due to the difficult macro and political environment, revenue growth was supported by price increases and strong sales growth in Turkey.
Analysts welcome with satisfaction the results of the group which mainly operates under the Beko brand,
İş Investment has increased the target price for 12 months from 202 TL to 230 TL (currently it is 152 TL) as the company’s third quarter data have met expectations with strong operating profitability and strong net profit growth.
The company revised its revenue growth expectations in 2023 from 60% to 75% for its Turkish operations while remaining pessimistic for its international operations which it expects to contract in foreign currency terms by 4% during 2023.

Arçelik-Whirlpool Antitrust continues the investigation until March 2024

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The Competition and Market Authority has decided to move to phase 2 of the authorization process for the merger between the European operations of Arçelik and Whirlpool .

The CMA has officially announced the launch of an in-depth analysis which will end on 26 March 2024 to assess whether the project could create a “substantial reduction of competition in any market within the United Kingdom”.

The CMA has appointed a commission of external experts (lawyers, former merchant bankers and researchers). The start of the operation announced at the beginning of the year has therefore been moved to at least mid-2024.

The attention of the top management of the two companies as well as of governments, unions and operators therefore shifts to the European Antitrust which should make a decision by 23 Octobe

Arçelik-Whirlpool, the EU will decide by October 23rd

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The agreement which provides for the sale of the Whirlpool and Beko activities in Europe to a new company largely owned by Arçelik was officially included in the protocol of the Competition DG on 18 September with number M11086. The European Antitrust will make its decision by October 23rd.Commission offices could ask for a supplementary investigation, as was done for example by the English Antitrust.

Last Monday (18 September) EU Commissioner Paolo Gentiloni received the CEO of Arçelik and president of Applia Europe Hakan Bulgurlu .
On Monday 25th in Rome, Whirlpool’s top management will meet the Italian unions to discuss the results of the first half of the year and the prospects for the workers of Whirlpool’s four Italian factories.

Beko concerned about Chinese brands

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Beko, the Turkish appliance Company, who is set to take over Hitachi’s consumer appliance business in Australia on October 1, in an effort to gain traction in the affordable premium market, is now concerned that Chinese brands are set to hurt sales of their bottom end Beko brand with management accusing the Chinese of setting up to dump product into the affordable appliance market.Recently Arcelik purchased a majority stake in Whirlpool’s household appliances business with the deal set to centre on Europe, however insiders are tipping that the business could end up with a deal in Australia.

Currently Whirlpool is distributed by the Harvey Norman owned distributor Arisit.

Arçelik keeps winning

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Arçelik Global is recognized for our outstanding product designs as we took home 14 awards for our key brands from this year’s prestigious Red Dot Design Award, UX Design Awards and iF DESIGN Award ceremonies

Recognised internationally for design excellence, the awards celebrate technological development, design innovation and ingenuity across different product categories. This year, Beko achieved two awards for its SaveWater washing machine and tumble dryer technology for its enhanced functionality and design. Launched in September 2022, the SaveWater washing machine and tumble dryer combo is a great example of a contemporary design solution. The connected appliances together save water collected from the tumble dryer and reuse it in the initial stages of the washing machine cycle, using out-of-the-box thinking to reduce waste. Among other winners were the Beko 30″ Slide-in Range cooker series, Beko Full Automatic Espresso Machine, Grundig – Delta TV.