LG Electronics is expanding its production facilities in emerging markets such as India and Brazil while strengthening new business channels, including appliance subscription services and B2B operations The company is currently constructing its third factory in India, located in Sri City, Andhra Pradesh, to meet the growing demand for premium home appliances. In Brazil, LG is building a new production facility in Fazenda Rio Grande, set for completion next year. This will be the company’s second manufacturing plant in the country, focused on premium appliances and components
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EU Commission Is Threatening Jobs and Innovation
By dismissing the appliance sector’s strategic importance, the EU risks undermining its innovation, sustainability, and economic resilience goals. Read more here .https://europeanconservative.com/articles/analysis/eu-commission-is-threatening-jobs-and-innovation/
Haier to close factory
The Chinese manufacturer Haier invested 65 million euros in the construction of the factory in Aricești Rahtivani, about an hour north of Bucharest, and received 25 million euros in state aid, which was gradually paid to the company. Haier representatives are now negotiating with the Romanian government to withdraw from the contract. The factory has fallen victim to optimization processes that Haier started in response to developments on the European market. The world leader in the appliance market tried to reduce operating costs last year and laid off about half of the original thousand employees in Romania. However, this was clearly not enough to save the plant. More than 400 people will lose their jobs by March of this year. The remaining 100 or so will work for Haier until the entire factory is completely dismantled. The equipment and machines will be used in another Haier industrial complex – which one, Haier did not specify. Since the end of the factory has a considerable impact on the labor market in its vicinity, employees will receive assistance from an employment agency in addition to severance pay, which should help them find alternative jobs
Haier European manufacturing update
Haier Europe has signed an agreement today with trade union representatives regarding the reconversion project of the Brugherio production site. The agreement follows the meeting of 20 January, during which the company presented the European business transformation plan to the
#unions . The project, which will be structured in several phases starting from July 1st, will have the objective of transforming the Brugherio plant into the Haier Europe Service Hub, dedicated to spareparts , which will serve the European markets in which the company operates. In particular, the project involves the consolidation of logistics activities, including reception, storage, packaging and shipping. Following the reconversion plan, the plant will have a storage capacity of approximately 50,000 pallet spaces, distributed over an area of 44,000 square meters. To support this transformation, Haier Europe has planned an #investment of between 6 and 9 million euros. With the reconversion plan of the Brugherio site and the start of the Service Hub activities, the company expects to employ approximately 110 people of the 160 #employees currently employed at the production site. In addition to the Service Hub, Brugherio will continue to host the European management center (HQ) – together with the offices in Vimercate – the Milan Experience Design Center and the research and development laboratories dedicated to connectivity and the Internet of Things, to support all product lines, for a total of approximately 900 people
Whirlpool India shares plunge as parent plans to halve stake
Whirlpool Corp said it would more than halve its stake in its Indian unit to about 20%, sending Whirlpool of India’s shares plunging an exchange-allowed maximum of 20% to a near ten-month low on Thursday.
The U.S.-listed home appliance maker, which currently has a 51% stake in the India unit, said it estimates net cash proceeds, opens new tab of $550 million to $600 million from the sale, which it expects to close by mid-to-late 2025.The company will remain Whirlpool of India’s largest shareholder, followed by a number of mutual funds with stakes of less than 10%.
Whirlpool Corp sold a 24% stake in the Indian unit for about $468 million last year and the latest sale comes as it aims to pay off a major chunk of its debt amid a major rejig of its global assets, including folding its European business into a new firm and selling its Middle Eastern and African businesses
LG drop in profit
LG Electronics logged 6.4 percent drop in operating profit due to slow demand recovery in global home appliances and surge in logistic costs last year, the company said.
The Korean electronics giant posted 3.4 trillion won ($2.4 billion) in operating profit for the full year of 2024, according to its earnings announcement on Thursday, falling short of 3.7 trillion won market consensus compiled by FnGuide.
Its revenue marked a record high of 87.7 trillion won during the same period.
Growth of home appliance and vehicle solutions businesses contributed to the record-high generation of revenue in 2024, the company explained. Its TV and business-to-business sales also improved its sales last year.
China exports increase
Data from the General Administration of Customs showed that China exported 383.6 million household appliances in December 2024, a year-on-year increase of 16.1%; the cumulative exports from January to December were 448.144 million units, a year-on-year increase of 20.8%.
6.36 million refrigerators were exported, a year-on-year increase of 10.7%; the cumulative exports from January to December were 80.32 million units, a year-on-year increase of 19.7%.
In December, 2.82 million washing machines were exported, up 18.3% year-on-year; from January to December, the cumulative exports reached 32.86 million units, up 14.2% year-on-year.
Evolution in average lifespans of household appliances
According to the European Environment Agency, the lifespan of household appliances has increased by an average of 2%, based on a survey across four Member States. Small appliances such as vacuum cleaners and coffee machines, as well as larger ones like washing machines and refrigerators, are lasting longer, demonstrating improvements in quality, longevity, and reliability. Appliances with a longer lifespan mean fewer replacements, which helps minimise waste and supports more sustainable use of resources. It’s a positive shift that benefits both consumers and the environment, as the home appliance sector continues to improve its products in a more resource-efficient way
The future of home appliances in Europe
The home appliance industry is a cornerstone of Europe’s economy, contributing €79 billion to the EU’s GDP and supporting over 1 million jobs across 130 factories in Europe. Appliances such as fridges, washing machines and irons by sit in the homes of every European household, highlighting the importance of these products in our everyday lives and to the success of Europe’s decarbonisation and housing plans. With the new EU mandate, the sector strongly supports the following recommendations as in line with the ‘Draghi Report’: ⭐ Promote innovation in energy-efficient home appliances to help drive decarbonisation while lowering costs for consumers ⭐ Support the growth of a competitive and sustainable home appliance industry to maintain European leadership in technology ⭐ Safeguard jobs and ensure fair competition within the European market
Stalemate in Negotiations Between Italian Government and Beko Europe Over Factory Closures
Negotiations between the Italian Government and Beko Europe have hit a substantial deadlock regarding the planned closure of several factories and production lines acquired from Whirlpool in Italy. During a hearing before the Chamber of Deputies’ Productive Activities Committee, Maurizio David Sberna, Beko Europe’s head of external and institutional relations, expressed the company’s commitment to evaluate all potential industrial operations. He emphasized that any actions taken to mitigate the impact of these closures would only proceed if they do not alter the economic impact of the current plan, which aims to halt unsustainable financial losses.
The factories in Siena, Comunanza (Ascoli Piceno), and Cassinetta (Varese) are particularly affected, with each incurring over €50 million in annual losses. This situation is exacerbated by the overall decline in demand for household appliances in Europe and increased competition from Chinese manufacturers. Beko Europe estimates a loss of €224 million in the large household appliances sector in Europe for 2024 alone.
Beko Europe also reiterated that their plan complies with the requirements notified under the Golden Power regulations. Consequently, there are no grounds for government intervention to alter Beko Europe’s actions, with the government’s role limited to monitoring the implementation methods.
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