Beko Europe announces manufacturing footprint optimization plan for Polish manufacturing operations

·      Company to consolidate operations and strategic investments in the country for long-term viability amidst market challenges.

·      Plan includes consolidating manufacturing into two strategically located, modernized facilities in Wrocław and Radomsko, strengthening Beko’s presence in Poland, and discontinuing operations in Łódź and the Wrocław refrigeration factory.

·      Reaffirmed commitment to support impacted employees during the transition and collaborate with local authorities.

Beko Europe, a leading home appliances company, today announced a manufacturing footprint optimization plan aimed at securing a sustainable and profitable future for its manufacturing operations in Poland. This plan is a necessary step in response to significant challenges, including declining consumer demand for free-standing devices and increasing competition in the European appliance sector.

The changing market and weak demand for products manufactured in Poland have impacted the viability of Beko Europe’s operations. Polish manufacturing facilities, particularly in Łódź and Wrocław, have experienced major financial losses for several years. This situation, which became apparent following a detailed post-closing strategic review, necessitates decisive action to guarantee the company’s operations have a long-term viability.

To address these challenges, Beko Europe will initiate the necessary steps to discontinue operations at the Łódź factories (cookers, dryers and plastic components) and the Wrocław refrigeration factory, in addition to some office positions. The proposal will be conducted in close consultation with relevant stakeholders, including trade unions and local authorities, and applicable laws. The closure of the Łódź facility and adjustments at the Wrocław site-located positions (white and blue collar) will potentially affect approximately 1,800 positions. Impacted production at these sites is expected to cease by the end of April 2025. Commercial Operations based in Warsaw, the remainder of the manufacturing operations in Radomsko and the Wrocław cooking factory will continue to operate normally. The Łódź’s Shared Service Center (SSC) will continue to remain fully operational. 

Beko Europe recognizes the impact this decision will have on its employees and the local communities and is fully committed to managing this transition with the utmost care and compassion and will engage openly with all affected employees to assist with their transition. The company will work closely with the local authorities to help employees find alternative employment opportunities.

“The proposed restructuring is a difficult but necessary step to secure the future of our operations in Poland and ensure a sustainable and profitable future for Beko Europe. This decision has not been made lightly, and we fully recognize and respect the superb workforce both in Łódź and Wrocław sites. Our priority is to support our employees throughout this transition with transparency and empathy,” said Francesco Celentano, Senior Director Operations Northern Area at Beko Europe.

This restructuring is part of a broader transformation plan aimed at returning Polish-based manufacturing operations to profitability and ensure their long-term viability. Post-transformation, Beko’s manufacturing operations in Poland will focus on core product lines, such as washing machines, dishwashing and built-in ovens, with continued investment in R&D and Shared Services Center (SSC) to enhance competitiveness.

The vision for the future includes maintaining a strong presence in Poland through two strategically located factories in Wrocław and Radomsko as well as the Shared Service Center in Łódź.