Tag Archives: #Industry

The future of home appliances in Europe

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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

https://applia-europe.eu/news-applia/the-future-of-home-appliances-in-europe-confronting-challenges-as-the-new-commission-takes-office

Stalemate in Negotiations Between Italian Government and Beko Europe Over Factory Closures

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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.

Gree Electric has developed its own chips,

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Chinese home appliance manufacturer Gree Electric has developed its own chips, Chinese local media reported on Monday citing its chairwoman, six years after the firm embarked on efforts to do so.

Dong Mingzhu, told news portal Sina.com that the company had achieved capabilities in chip research, design, and manufacturing, all without funding support from the Chinese government. She did not detail what kind of chips Gree was now able to make.

In 2018, Gree set up a subsidiary to design chips for air conditioners and the company announced that it wanted to move into making more smart home products. At the time, Dong said that Gree spent 4 billion yuan ($549.45 million) a year on buying chips for its air conditioners.

Arçelik to close factories

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Arçelik, which has now decided to close its 3 factories in Italy after Poland, is increasing its production volumes in Turkey while investing in Egypt.In a recent statement regarding the €110 million investment plan in Italy, it was mentioned that “As outlined in our company’s special situation statement dated November 7, 2024, negotiations are ongoing with the Italian Ministry of Companies and Made in Italy (Ministero delle Imprese e del Made in Italy) and other relevant authorities, national and regional unions, and employee representatives to evaluate the long-term sustainable transformation plan for our Italian operations.”

The statement further elaborated:

“Our goal to establish Italy as a strategic hub for industrial design and the cooking appliances category remains steadfast. We plan to invest €110 million in our Italian operations in the coming periods. Carinaro is expected to continue as the center for spare parts and renovation. To enhance profitability and efficiency, we aim to rescale some production operations related to the laundry and cooling categories in Cassinetta, Siena, and Comunanza. Additionally, we will initiate industrial transformation processes in certain areas and evaluate all strategic options, including potential disposals. Regardless, production in these factories will continue until the end of 2025.

The Ministry and union representatives have expressed their views on safeguarding local employment and have requested a re-evaluation of the submitted proposals. Negotiations will continue with unions and employee representatives for the approximately 2,000 employees expected to be impacted by this process across all our operations in Italy.”

Hisense job cut rumours

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According to Chinese media outlet Lanjinger News, several individuals claiming to be Hisense employees have taken to social media to allege that Hisense Group is undergoing significant layoffs. Reports suggest that the company’s workforce is being reduced from 110,000 to 80,000, with an estimated layoff rate of 20 to 30 percent. One verified employee of Hisense Home Appliances mentioned that the layoffs would occur in two phases, before and after the Lunar New Year, with an overall reduction of 30 percent.

Lanjinger News contacted multiple Hisense employees, who confirmed awareness of the rumors but were unclear about the specific plans or scale. An employee from Qingdao Hisense Network Technology Co. noted that many employees had already been informed. Another employee suggested that online reports might be exaggerated and that the actual number of layoffs could be lower, although demand and orders this year were significantly weaker compared to previous years.

When Lanjinger News reached out to Hisense Home Appliances Group and Hisense Visual Technology as investors, a representative from Hisense Home Appliances indicated that large-scale layoffs were unlikely but not yet confirmed, advising investors to make their own judgments while noting that the circulating information was inaccurate. A representative from Hisense Visual Technology stated that no related notices had been received.

Attempts to verify the information with Hisense Group’s public relations department went unanswered at the time of publication.

The report also recalled similar rumors from early 2020, when Hisense faced allegations of a large-scale layoff involving 10,000 employees. At that time, the company acknowledged workforce reductions as part of a performance optimization strategy but denied the scale of the layoffs being as high as reported.

Miele USA factory opens

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Miele, the world’s leading manufacturer of premium domestic home appliances, has officially commenced production at its first-ever US-based production plant. Located in Opelika, Alabama, the facility has begun producing its Generation 7000 built-in ovens, designed specifically for the North American market. 

This Opelika facility will produce appliances for the neighboring US, Canada and Mexico markets, which will greatly reduce the delivery time from weeks to just a few days, while also lowering the impact on the environment. This much improved turnaround time is important as the US market continues to be a key growth market for Miele.

“The facility is up and running as part of the first phase of development,” said Uwe Brunkhorst, Senior Vice President of the Business Unit Cooking at Miele.  “We are especially pleased that despite the tight timeline, the team has achieved their goal and production has started ahead of schedule – the first oven has officially come off the assembly line.”

“Collaboration between the production sites in both Germany and the US together with the newly hired and thoroughly trained staff played a crucial role in this success,” said Ulf M. Kranz, Managing Director of the Opelika production plant in the United States.

The first American employees were trained at the Oelde plant in Germany, and those members of the team are now taking on both assembly tasks as well as the training of new colleagues in Opelika. The thirty-five person on-site team is growing exponentially and in the first phase, the plant is slated to employ up to 150 people.

LG professional laundry

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LG Electronics (LG) is showcasing its PROFESSIONAL LAUNDRY lineup at Texcare International 2024, a global B2B laundry and textile care exhibition, held in Frankfurt, Germany, from November 6-9. Prioritizing energy efficiency, the new lineup features a variety of large-capacity solutions, including 30-kilogram washers and dryers, as well as a washer-dryer combo with heat pump, offering a maximum capacity of 25 kilograms for washing and 16 kilograms for drying. With the launch of its PROFESSIONAL LAUNDRY lineup, LG aims to strengthen its position in the commercial laundry market, both in Europe and worldwide.LG’s PROFESSIONAL LAUNDRY lineup boasts outstanding durability. The new washers feature the company’s Ball Balancing System, which supports a maximum spin speed of 1,100 RPM and enhances stability during high-speed washing cycles. The 25-kilogram washer-dryer combo stands out as one of the largest models in the heat pump combo category and is the industry’s first commercial combo to employ an inverter heat pump drying module. This proprietary technology significantly reduces drying times and boosts energy efficiency. Ideal for businesses with high laundry demands, such as hotels and care facilities, LG’s impressive heat pump combo represents a reliable, energy-efficient alternative to traditional gas and electric dryers

Turkish home appliance manufacturers express concerns

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The Turkish White Goods Manufacturers Association (TÜRKBESD) has raised alarms about the potential repercussions of ongoing anti-dumping investigations on essential materials such as stainless steel and sheet metal. These investigations could lead to increased production costs and inflation.

Taxes on crucial materials, including stainless steel, sheet metal, and polystyrene, which constitute 17-18% of production costs, might elevate product prices by 5% and diminish international competitiveness.

This scenario could shrink Turkish manufacturers’ global market share and export capacity. In September, Turkey’s domestic white goods market experienced a 15% decline

Midea new factory Brazil

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Midea has launched its second home appliance factory in Brazil, now with an annual production capacity of over 1 million units, marking a new milestone in #manufacturing capabilities. 🎉

With an integrated system for production, R&D, and sales, Midea has created a nationwide network of sales and after-sales channels to meet local market needs and foster #innovation.

Moving forward, Midea will continue to focus on product innovation and market share growth in Brazil, while deepening local production capacity and supply chain, further enhancing competitiveness across South America

APPLITECH 2025 is the first and only European trade show exclusively dedicated to the production of appliances

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APPLITECH 2025 is the first and only European trade show exclusively dedicated to the production of appliances and consumer electronics in all its aspects: technologies, equipment, design, machinery, accessories, components, parts and spare parts, materials, logistics and services.

A real business and networking event tailor made for all appliances and consumer electronics manufacturing industries . The event will take place in the prestigious Bologna Exhibition Centre, on 12-14 November 2025 . In an exhibition area of over 12,000 square meters , hundreds of companies will showcase the best of national and international technologies and services , and their novelties: in this supply chain sector, as well as many others, Italy is at the forefront of the world, and its companies are leaders in innovation, technologies, export and market share.

APPLITECH 2025 will bring together thousands of globally renowned experts from appliance and consumer electronics manufacturing industries and their value chain suppliers, managers, technicians, planners, installers, dealers, distributors, retailers, investors, institutions and associations, science and academia, policy-makers , NGOs, research centers and consultants