Miele Group is now also feeling the impact of a worldwide slump in demand for domestic appliances and drastic cost-side price increases. In terms of long-term countermeasures, a comprehensive program to further improve structures, processes and costs has been launched. As the Executive Board today announced to the workforce, additional financial room to manoeuvre in the order of € 500 m is to be freed up by 2026. By more than two-thirds, this will be achieved through improvements in turnover or through reductions in material and associated costs. Nevertheless, a substantial reduction in personnel costs is also unavoidable. This means that up to 2,700 jobs could be cut worldwide or be affected by relocation. The process will be conducted as socially compatibly as possible.
After three years of strong turnover growth in succession, the entire domestic appliance branch recorded a decline in business across the globe in 2023. Along with the end of the extraordinary economic cycle as a result of Covid, it is also the economic consequences of the war in Ukraine which have impacted the situation. And, unlike in earlier economic cooldowns in the markets, this is particularly noticeable in the premium segment. Against this backdrop, the preliminary turnover of the Miele Group dropped by around 9%; in terms of unit sales, the decline year-on-year was around double this percentage. There are no indications of market recovery in sight any time soon. At the same time, high inflation is resulting in significantly higher costs in procurement, for example for materials and energy, but also regarding wage tariffs.
‘What we are currently experiencing is not just a blip in the economic cycle but rather a sustainable shift in the framework conditions which are relevant to us and to which we must adjust’, the Executive Board of the Miele Group announced today to employees in an internal address. That is why prompt and decisive action will be taken in order to come out of this challenging situation with renewed strength. The framework for this is provided by a companywide cost and efficiency initiative under the title ‘Miele Performance Program’ which addresses the structures, processes and costs in all areas. With the aim of sustainably securing economic viability, additional financial room to manoeuvre in the order of € 500 m is to be created by 2026, whereby more than two-thirds of this will come from improvements in turnover and a reduction in material and associated costs.
Necessary response to changes in market conditions
But considerable savings must also be achieved in terms of personnel costs as the company considerably increased its expertise and capacities during the years since 2019 which were marked by strong growth. As a consequence of changes in the market situation, adjustments are now unavoidable. As plans currently stand, up to 2,000 jobs are potentially affected worldwide, chiefly in so-called indirect areas, i.e. persons not operating production machinery or on assembly lines.
Furthermore, considerable effort is necessary to put Laundry Care at Miele, currently hit by fierce and strong price-driven competition, back on an economically sound footing once again. To this end, the team in the Laundry Business Unit is working on a customer-centric product strategy, more compelling marketing and on a reduction in complexity. In addition to this, the current planning status means that, for reasons of costs, a relocation of further parts of washing machine production in Gütersloh and associated areas to the Miele plant in the Polish town of Ksawerów is inevitable.
Subject to the outcome of negotiations with employee representatives, it is also planned to relocate the assembly of almost all domestic washing machine to Ksawerów in stages through to 2027. In total, this would result in staggered cuts to around 700 jobs at the Gütersloh plant. The remaining parts of appliance production there, such as the press-shop, the foundry and the machining of castings, would not be affected and would remain in Gütersloh until further notice. This also applies to the assembly of washer-dryers and small commercial machines.
Cutbacks as socially compatible as possible
Taking the measures described together, potentially 2,700 of the current 23,000 or so jobs would be affected. ‘These are grave measures, and we are fully aware that this will hit many colleagues hard’, the Executive Board continues. Only this way will it be possible to put Miele back on track towards a successful future – as a strong and independent family company with a clear focus on premium and with the necessary earning power in all areas.
Which areas will be affected by staff cutbacks and to what extent has not yet been decided as details are to be further fleshed out over the coming months and will be the subject of negotiations with social partners. Potential downsizing to the extent described does not, though, mean that anywhere near the same number of redundancy notices are to be expected. The Executive Board also stressed a further point: ‘Miele would not be Miele if the pending transformation were not to be conducted as socially compatibly as possible and in close collaboration with employee representatives’. As announced, hopes will be pinned on a constructive dialogue with the IG Metall trade union.
Strategic investments in innovation and growth
In the year which marks 125 years of company history, a further avowed goal is to set the signals for growth once again. In this respect, Miele can build on its strong brand, on a unique claim to premium and quality within its branch, on delightful products and committed and creative teams in 50 countries. ‘Besides that, we are a family company which thinks in generations and not in terms of quarterly reports’, the Executive Board reiterated as it mapped out the prospects for the coming years. As a consequence, Miele is continuing to invest consistently in its strategically important projects. Current examples are the development of new product generations, the construction of an additional production plant in the USA, the complete takeover of the outdoor cooking specialist Otto Wilde – and the intended joint venture with Metall Zug AG to strengthen medical technology at Miele.
Tag Archives: Miele
Miele 125 years of quality
Two families, one company and 125 years of delivering fantastic service and products to customers around the world. This year sees Miele celebrate its 125th birthday. Founded in 1899 by engineer Carl Miele and businessman Reinhard Zinkann, Miele have remained true to their “Immer Besser” brand promise. Join us throughout 2024 as we celebrate many of the aspects that makes Miele, the organisation that it is today. Long story short: 125 years of quality
Miele takes over Otto Wilde Grillers completely
When Miele acquired a majority stake in the Düsseldorf-based start-up in March 2021, this marked the Gütersloh-based company’s entry into the outdoor cooking sector. By acquiring the remaining shares, Otto Wilde Grillers is now a 100 per cent subsidiary of the world’s leading supplier of premium domestic appliances. In the course of the complete takeover, the founders Alexander Luik and Nils Wilde have announced that they will retire from the company but will remain on board in an advisory capacity
The common goal of Miele and Otto Wilde is to establish a high-quality and harmonised outdoor enjoyment world for highest demands. And with success: almost 8,000 units of the Otto Wilde platform, with the G32 Connected gas barbecue made entirely of stainless steel at its centre, have already been sold. The sales network has also been expanded to around 100 well-positioned specialist dealers since last year. Otto Wilde is also continuing to expand its platform concept, most recently launching an innovative storage system for outdoor kitchens
German appliance maker Miele selects Alabama for its first U.S. factory
Governor Kay Ivey announced Thursday that Miele, the world’s leading manufacturer of premium domestic appliances, has selected Opelika as the location for a U.S. manufacturing hub that will employ hundreds of workers.
Germany-based Miele is launching a long-term growth project in the East Alabama city that ultimately will create several hundred jobs and see the company build a major production facility serving multiple business units as its U.S. business expands.
“Miele is one the world’s most iconic brands, and we’re thrilled to have this great company select Alabama as the home for its first U.S. manufacturing facility,” said Governor Ivey. “Miele is a wonderful addition to our state’s business community, and I look forward to the day when its new Opelika facility is turning out first-class ‘Made in USA’ appliances coming from Alabama.”
Initially, Miele plans to occupy an existing facility in Opelika to jump start production of appliances, creating over 150 jobs by 2026. In Phase II of the growth project, Miele plans to build a large facility that will serve as the company’s major U.S. production center, creating an additional workforce by 2030
Miele increases commitment to Circular Economy and gives washing machines a second lease of life
Miele increases commitment to Circular Economy and gives washing machines a second lease of life
- Sale of used washing machines in the Netherlands
- Several refurbishment and recycling projects have been running for a year
- Circularity as focus of sustainability strategy
Conserving resources, reducing waste, returning materials and products into circulation: A fully functional circular economy is the key to rising to the challenges of climate change, the waste crisis and scarce resources. Miele has pronounced the circular economy a strategic issue and embarked on a course of action. The company is currently trialling various aspects of circularity under real-life conditions. The domestic appliance manufacturer is selling refurbished washing machines in the Netherlands and researching a reuse of parts and materials.
‘With our durable and energy-saving domestic appliances we have been making a valuable contribution for decades towards conserving natural resources, and now intend to implement the principle of circularity at Miele with even greater conviction’, says Rebecca Steinhage, Executive Director Human Resources and Corporate Affairs and responsible for sustainability at Miele. True to Miele’s own motto of ‘Immer Besser’, Miele has set itself the goal of ‘creating a circular value creation chain in which all materials used in our appliances are returned into circulation at the end of their life cycles.’
Refurbishment project in the Netherlands successful
For over a year now, a Miele pilot project has therefore been running in the Netherlands to sell refurbished washing machines, that have been checked, repaired, cleaned and then offered with the ‘refurbished’ label. In the process, the machines are subjected to similar tests as new appliances before being sold at a reduced price. Half of the machines selected for the refurbishment project can, indeed, be repaired so that they are once again fully functional. ‘This gives our washing machines a new lease of life and allows us to offer customers Miele quality at an attractive price’, maintains Rebecca Steinhage.
Washing machines which cannot be repaired take another route: The high-quality electronic controls are removed and processed by a specialised company in Germany. They are then sold to consumers who reinstall them themselves. Over 90% of the electronic units harvested in this way can provide many years of reliable service.
In another part of the project, the detergent dispenser drawers are removed from the machines as these lend themselves well to recycling on account of their material composition. The material is separated out and sent to a recycling company where it is reprocessed as granulate for reuse in production. Miele is using this material to research on quality and possible applications for the future.
Miele and Metall Zug venture
Miele and Metall Zug are planning a joint venture to strengthen their medical technology and pharmaceutical divisionsSteelco (Miele) and Belimed (Metall Zug) are joining forces
Portfolio comprises hygiene solutions for hospitals, biomedical research, and pharmaceutical applications as well as biotechnological requirements
Highest standards of quality, innovation, and customer proximity
In order to expand its medical technology and pharmaceutical division in the Professional business unit, Miele will be contributing its subsidiary Steelco Group to a joint venture with the Swiss industrial holding company Metall Zug AG. Metall Zug will in turn be bringing its two Belimed companies – Infection Control and Life Science – to the joint venture. Steelco and Belimed both produce cleaning, disinfection and sterilization solutions for hospitals, biomedical research and pharmaceutical and biotechnological applications. By combining their product and service portfolios, the two companies are aiming to become one of the most reliable, innovative, and customer-focused providers in the industry. The agreement regarding the joint venture, in which Miele is to hold a 67 % share and Metall Zug 33 %, was signed on 27 November. Closing is to take place once the necessary regulatory approvals have been obtained.
Operators of clinics and hospitals and those in charge of pharmaceutical production are facing new challenges, from increasing hygiene requirements in infection and contamination control to ensuring cost-effectiveness and dealing with the increasing shortage of staff. As a result, demand is growing around the world for technologically advanced and economically attractive equipment that meets the highest standards of hygiene. Belimed and Steelco have enjoyed an excellent reputation as providers in this field for decades – with products and services for cleaning, disinfection and sterilization of medical equipment, laboratory supplies and solutions for the pharmaceutical industry and biotechnological applications. Furthermore, both companies share a commitment to the highest quality standards and maximum customer focus.
“The Professional business unit is already very important to Miele,” says Dr Axel Kniehl, who is Executive Director Marketing & Sales for the Miele Group and is responsible for this business unit. “With this joint venture, we will be strengthening our strategic position as a global premium provider in the field of medical and pharmaceutical technology and will be creating additional opportunities for growth, particularly in North America and Asia.”
Belimed and Steelco – premium partners on an equal footing
Steelco has been part of Miele since 2017. The subsidiary looks after the global clinic project business, among other things, and is therefore responsible for all aspects of planning and equipment for sterilization departments in hospitals. The company, which was founded in 2001, has two production locations in Italy – at the headquarters in Riese Pio X and in Cusano. Furthermore, the company has branches in 14 countries and a strong network of distributors in its core markets. In 2022, Miele generated turnover of approx. EUR 194 million through Steelco business, with the company employing around 800 people. In addition to many years of expertise in infection control and pharmaceuticals, Steelco brings a broad product portfolio and a high level of innovative strength to the project. “We are looking forward to working with Belimed – together we want to provide our customers with the most innovative and reliable solutions in the industry,” says Fabio Zardini, CEO of Steelco.
Belimed, which is headquartered in Zug in Switzerland and has production locations in Sulgen (Switzerland) and Grosuplje (Slovenia), employs around 1300 people in the areas of infection control and pharmaceuticals. With its two companies Belimed Infection Control and Belimed Life Science, the Group is represented in more than 80 countries – with its own sales and service hubs in some cases – and particularly in growth markets such as the USA and China. Its most recent turnover figures amounted to approx. CHF 229 million. At the same time, customers appreciate Steelco’s high level of quality and expertise in relation to digital solutions. “Steelco and Miele are strong and reliable partners. With their growth momentum and years of expertise, they are the perfect fit for us and our joint plans for the future,” says Martin Wipfli, Chairman of the Board of Directors at Metall Zug AG.
“With the joint venture, we want to combine the best of both worlds. A broad, innovative, and interconnected product portfolio combined with a dense global sales and service network will allow us to achieve maximum customer proximity,” explains Dr Christian Kluge, Senior Vice President Business Unit Professional, whose recent turnover figures of more than EUR 750 million included a significant contribution from Steelco business
Miele Ireland
A New Chapter for Miele Ireland:
These are indeed exciting times for Miele Ireland as they embark on this new chapter with the newly open Liffey Valley experience centre.
Miele most durable brand
Miele has announced that it has once again been recognized as the most durable brand on the market by a reliability survey carried out by the most important consumer organization in Europe, in which more than 50,000 European users participated.
Miele wins the German Sustainability Award for the second time
Miele won the German Sustainability Award 2023 in the ‘Home Appliances’ category. The Gütersloh company had already obtained the award in 2014. The lifespan of its products, the attention to reducing the resources used in the production phase and the CO2 emissions during the use of household appliances together with the responsibility assumed towards of supply chains and employees earned Miele the jury’s recognition.
The German Sustainability Award recognizes companies from all industrial sectors that have achieved success on their long and arduous journey towards sustainability. Independent specialized juries decided on the basis of sustainability profiles which companies are leaders in 100 categories and identified them
Miele committed the right to Repair
Miele join in Repair day is here, and so is our commitment to a more
sustainable home. In a world where things are often quickly replaced, Miele wants to make sure your appliances stay in great shape for as long as
possible.
That’s why we offer quick and easy troubleshooting support and
make sure our spare parts are available for at least 15 years
through various channels.
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