Beko has announced a plan to optimize its manufacturing operations, aimed at ensuring a sustainable and profitable future for its industrial operations in Poland. “This plan is a necessary step in response to serious challenges, such as falling consumer demand for free-standing appliances and growing competition in the European household appliance sector,” reads a statement sent to Next.gazeta.pl.
Beko closes two plants in Poland
The Turkish manufacturer of household appliances announced that it will “take the necessary steps to terminate its operations” establishments in Łódź (production of cookers, dryers and plastic components) and the Wrocław refrigerator factory, as well as some office positions”. “Closing of the production zone in Łódź and changes in Wroclaw (concerning production and office workers) may affect approximately 1,800 positions,” it was further calculated. Production in these plants is to be completed by the end of April 2025.
“This plan will be carried out in close consultation with relevant stakeholders, including trade unions and local authorities, in accordance with applicable regulations,” Beko said. The company promised employees that it would conduct the process with “diligence and empathy.” It assured that all employees affected by the restructuring will be assisted in the transition to new jobs. Beko is to work with local authorities to help them find alternative employment opportunities.
“A difficult but necessary step”
“Beko Europe is aware of the impact this decision will have on its employees and local communities,” the company wrote in a statement. Francesco Celentano, Senior Director Operations Northern Area at Beko Europe, also assured of this. “The proposed restructuring is a difficult but necessary step to secure the future of production in Poland and ensure a sustainable and profitable future for Beko Europe. This decision was very difficult and we fully appreciate and respect the excellent staff in both Łódź and Wrocław,” he said.
Declining demand for products manufactured in Poland, combined with a changing market, led to a change in Beko's profitability.”Polish production plants, especially in Łódź and Wrocław, have been recording significant financial losses for several years,” the company reports. “The situation became apparent after a detailed strategic review, which began in April this year, and requires decisive action to ensure the long-term profitability of the company's operations,” the release continues.
Beko has a plan to operate in Poland
Beko will continue to operate in Poland. However, the changes will not affect the plants in Radomsko, the cooker factory in Wrocław and the Shared Service Center (SSC) in Łódź. Domestic commercial operations will also remain unchanged. Beko is currently carrying out restructuring to restore “profitability” Polish production operations and ensuring their long-term sustainability”.
Ultimately, Beko wants to focus on key product lines in Poland, such as washing machines, dishwashers and built-in ovens, with further investments in research and development and the Shared Services Center (SSC) to increase competitiveness. “The vision for the future includes maintaining a strong presence in Poland with two strategically located production zones in Wrocław and Radomsko and a Shared Service Center in Łódź,” the release said.
Beko Europe is a company that is 75 percent owned by Beko BV and 25 percent owned by Whirlpool Corporation. It employs over 20,000 people. It has 69 branches and 11 production plants throughout Europe. The company's annual production capacity is approximately 24 million pieces of household appliances.