Beko Europe, stop 2 sites and over 1,935 redundancies in Italy. Here is the multinational company's plan

The Italian household appliance industry is facing a new downsizing, after the Beko Europe group announced an industrial plan that, in Italy, envisages the closure of two sites, the downsizing of a third and of a research centre. By 2025, the plants in Siena, where freezers are produced, and Comunanza (Ascoli Piceno), where washing machines are manufactured, are scheduled to stop, as well as the downsizing of the Cassinetta (Varese) factory and the closure of the Fabriano research and development centre. The group intends to downsize production in the washing and refrigeration sector to focus on cooking. The reorganisation will have a rather rapid timeline, is expected by next year, and will entail 1,935 redundancies, according to what emerged at the meeting between the multinational's top management at the Mimit table with the unions. The announcement comes after 12 years of lay-offs between former Whirlpool and Beko Europe. The plan has met with a no from Mimit, which is announcing the Golden power to protect workers, and from the unions, which are preparing for protests and demonstrations.

Let us look at the plan, which presents a profound reorganisation, accompanied by cuts affecting workers, employees and managers, but also by investments to strengthen the production on which Beko Europe intends to focus in the future. From the multinational company they explain that the scenario for the household appliances sector is difficult and that the plan presented is a concrete solution that will allow a stable and long-term presence in Italy. 'The sector is under great pressure due to competition from Chinese manufacturers and a change in demand that makes it necessary to rebalance production, keeping sustainable and profitable activities in Italy,' explains a note. Italian sites are operating below 40 per cent of installed capacity, more than 20 per cent less than in 2017, and generating significant losses. Italy will play a central role in the cooking category (hobs, ovens, built-in microwaves) and research and development. The multinational company plans to invest EUR 110 million in built-in cooking, research and development (R&D) and strategic functions. This means new products and innovation in production processes, through robotics and logistics automation, as well as digitisation. Cassinetta, although downsized for the cold line, and Melano (Ancona) are confirmed as production hubs for microwaves, ovens and built-in hobs for Europe. The plan also foresees the search for possible re-industrialisation for Siena and Comunanza. The strategic leadership functions and key activities for Beko Europe in the areas of Human Resources, Marketing, Supply Chain, IT, Research and Development (R&D), and Modularity will also be confirmed and located in Italy. In addition, the Carinaro (CE) site will continue to operate as a European Centre of Excellence for spare parts distribution, together with the household appliance reconditioning activities launched in 2022.

Turning to the cuts and closures, these will affect the refrigeration and washing categories. On the Siena site (refrigeration), there will be no further investments, 'due to the structural loss of competitiveness and operating losses accumulated over the last five years in the order of tens of millions of euros, despite significant investments made in the horizontal freezer category,' explains a note from the multinational. On the wash, the Comunanza (AP) site, 'despite the significant investments received in recent years, is in a critical condition from the point of view of long-term economic sustainability and the possibility of maintaining activities with a sustainable level of profitable production'. Therefore, for both sites, all possible avenues will be explored to identify partners that can implement a process of reindustrialisation, with the aim of encouraging the reconversion of production activities. Still in the refrigeration sector, the Cassinetta di Biandronno (VA) built-in refrigerator site 'suffers from a structural loss of cost competitiveness and, among those located in Italy, is the one that has seen the greatest cumulative losses despite the considerable investments made over the last seven years. A downsizing of production activities will be undertaken at the site, maintaining production for three of the five lines currently in operation'. The redundancies, a total of 1,935, according to the data provided to the unions, will be divided between blue-collar workers, where there are more than 1,150, and white-collar workers and managers for the remainder.

The plan met with stiff opposition from both Mimit and the trade unions. The undersecretary in charge of corporate crises, Fausta Bergamotto, explained that she 'does not share' and cannot accept 'the plan presented by Beko Europe's top management. We will enforce the golden power, which for us means protecting employment'. Undersecretary Bergamotto also added that the government will not accept 'conclusions that are not shared with the trade unions. We will take every possible action to ensure that the owners change their strategy'. In a joint note, Fim, Fiom, Uilm and Uglm announced their mobilisation and appealed to the government to 'immediately exercise its golden power. Now is the time to move on to the facts'. The table was reconvened for 10 December.