Beko Europe presents an update on its industrial footprint and operations in meeting with Government and Employee Representatives

• Shared the current status of production and sales performances across Italy and Europe

• Reaffirmed Italy as a long-term strategic location, but need for viable and sustainable plan

• Willingness to cooperate with local authorities and employee representatives to define the next steps

Beko Europe (the “Company”) has today begun discussions with national and regional authorities, as well as employee representatives, at a public meeting at the Ministry of Enterprise and Made in Italy. Beko Europe presented an update on the outcome of its in-depth analysis of the Company’s industrial footprint and operations, as well as its appraisal of the broader industry context and economic landscape. 

The analysis pertains to the creation of Beko Europe earlier in 2024, after the successful completion of the Contribution Agreement between Beko’s wholly owned subsidiary Beko B.V. and Whirlpool Corporation’s wholly owned subsidiary Whirlpool EMEA Holdings LLC.

In the meeting, Beko Europe presented an overview of the structural challenges facing its operations in Italy, as well as a summary of the broader sector dynamics. These include: a marked slowdown in consumer demand across Europe, greater competition from Asian market players, negative business performance despite strong historical investments and structural over-capacity in Italy.

The Company reiterated its long-term commitment to Italy, and willingness to invest in Italy in product areas considered strategic. Italy will become the center of excellence for global cooking, including R&D, and global industrial design for Beko, while the European regional office in Italy will remain a decision-making center for key strategic functions. Carinaro will be maintained as a Center of Excellence in spare parts distribution and refurbishment operations, but the end-to-end presence of laundry and refrigeration will be further evaluated to avoid further cash loss.

Beko Europe will work closely with national and regional authorities in Italy, as well as union representatives, to shape a viable and sustainable long-term plan.