Business News

Gorenje to Move Production from Sweden to Slovenia Next Year

Velenje, 06 July (STA) - Slovenian household appliance maker Gorenje will move the production of its Swedish subsidiary Asko to its base in Velenje next year in line with a decision made by the Asko management committee on Friday. The departments for development, management and marketing will remain in Sweden.

In line with the decision, only 50 out of 500 employees in Sweden's Vara will keep their jobs. The production in Vara represents some 7% of Gorenje's total production, the company said in a press release.

The move will be carried out in two phases. The production of washing and drying machines will close in Sweden on 31 January 2013 to start in Velenje in April of the same year, while the production of dishwashers will conclude on 30 June 2013 and start in Velenje in September.

Asko has been performing below plans and posting negative results despite measures that were launched to improve its operations when it was acquired by the group around Gorenje in 2010.

Apart from that, Gorenje noted that the situation in the household appliance industry had been deteriorating since the onslaught of the world-wide economic crisis. The competition has become fiercer, while the pressure is mounting on sales prices because of the situation on the market and the high costs of materials.

Gorenje has been launching various measures to optimise its profitability and competitiveness, including optimising its production, in line with its strategy for the 2012-2015 period.

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