4 minute read

IN BRIEF

■ Following the passing of founding member of Utopia Liz Green, at the end of last year, the company has set up The Liz Green Charity Fund in her memory. The new fund will benefit two national cancer charities, Cancer Research UK and Macmillan Cancer Support, as well as the local charities that Utopia supports throughout the year. So far, the business and staff have donated £1,450 which has been split between the two charities. Read more at www.rdr.link/KAM001

■ Award-winning bathroom retail franchise Ripples is celebrating 35 years of trading in 2023.

Founded in 1988 by Roger and Sandra Kyme, the brand has grown from one showroom located in Bath to an awardwinning franchise with 16 showrooms nationwide. Since its inception, the family-owned and run Ripples franchise has earned over 70 industry awards, across the group. Read the story at www.rdr.link/KAM002

■ Find-a-tradesperson platform, Rated People has published its annual Home Improvement Trends Report, which outlines opportunities for tradespeople.

Rated People analysed around 1.1 million home improvement jobs, posted through its platform by UK homeowners, and spoke to UK tradespeople, homeowners and homebuyers to create the fourth edition. The research found bathrooms are most popular among renovators. Read more at www.rdr.link/KAM003

Factory line expansion will see production of two million high gloss doors

Howdens makes multi-million investment into UK factory

Trade kitchen supplier Howdens has made a multimillion pound investment into a factory extension and production line at Howden, East Yorkshire, strengthening its supply chain and creating jobs.

It has installed a high gloss kitchen door line measuring over one kilometre in length and which was opened by Rt Hon David Davis MP for Haltemprice and Howden, Once fully commissioned, the “Heartland” factory will manufacture over two million kitchen door frontals and décor ends in high gloss finishes.

Howdens currently imports the products from Italy and, according to the company, moving the production to the UK, will reduce both the lead time and make the costs more competitive.

The company has also invested in a second high speed painted architrave and skirting line which more than doubles its capacity.

Investing in its UK manufacturing operations, will see Howdens create up to 100 new jobs for the area, including machinists and engineering technicians.

Howdens has factories in Howden and Runcorn in Cheshire and has achieved carbon-neutral manufacturing status at both plants, certified by The Carbon Trust, and has reached Zero waste to landfill.

Proposal to close two factories and loss of 500 jobs

Speaking at the opening of the Heartland factory extension, CEO Andrew Livingston said: “I would like to extend my thanks to everybody who made this project happen.

“It’s a significant investment and it’s absolutely the right one. It creates jobs. It strengthens the supply chain to our 808 depots.

“It give us flexibility and agility in our supply chain and it gives us better cost prices to make us even more competitive.”

Nobia announces UK cost reduction programme

Nobia has decided on a cost reduction programme including repositioning of part of its UK business to drive efficiencies and margin improvement, in addition to existing initiatives,

The programme aims to generate annual savings in excess of SEK 300m, with a “noticeable” impact in the second quarter of 2023 and reaching “full” effect in the second quarter of 2024.

The programme involves the potential redundancy of 500 employees.

Organic growth for the group in the fourth quarter of 2022 was low single digit, with support from price increases.

The Group’s preliminary operating profit for the fourth quarter, excluding items affecting comparability, declined to SEK 25m, impacted by continued higher supply chain costs in the Nordics and a weaker performance in the UK.

Nobia will reposition and exit unprofitable project business in the UK to drive “necessary” profitability improvement and increase competitiveness.

The proposed changes, subject to customary union negotiations, include consolidation of the manufacturing footprint and flattening of the UK central organisation.

It is proposed the production sites in Dewsbury and Grays in the UK will also be closed.

Furthermore, certain functions in the Nordic region and at Group level will be reduced, in order to save costs and support earnings improvement.

President and CEO of Nobia Jon Sinton reported: “We are addressing several areas in order to achieve significant and sustainable margin improvement. Regrettably, some of the necessary actions we are taking will result in redundancies.

“In the UK, the proposed changes will make us a better business partner for our customers and cater for an improved profitability level. In parallel, we are continuing to focus on completing the construction of our new Nordic factory in Jönköping, which will be the most modern and efficient in our industry.”

Company divests parts of EMEA business

Whirpool creates new business with Arçelik for European MDA

US appliance manufacturer Whirlpool Corporation has divested parts of its EMEA business and formed a new entity with Turkish manufacturer Arçelik.

The new business will include the Whirlpool European major domestic appliance (MDA) business and Arçelik MDA, consumer electronics, air conditioning and small domestic appliance business.

It is expected to have combined sales of over $6billion and the combined businesses are forecast to generate cost synergies of more than $200million.

Whirlpool will own 25% of the newly-formed entity, while the remaining 75% will belong to Arçelik.

The new business has yet to be named and it will be agreed in the second half of 2023.

Director of UK communications and government relations at Whirlpool Corporation Ian Moverley commented: “The new company will bring together the best of the two complementary companies to deliver value to consumers through attractive brands, sustainable manufacturing, product innovation, and consumer services.”

He explained: “Ownership of the

Hotpoint, Indesit, Bauknecht, Privileg, and Ignis brands will be transferred to the newly-formed company.

“The newly-formed company will have a multi-year license to sell Whirlpool-branded MDA products in Europe.”

However, Ian Moverley added: “The KitchenAid (SDA & MDA), Maytag and InSinkErator businesses will continue to be owned and operated by Whirlpool.”

Separately, Whirlpool agreed in principle to the sale of its Middle East and Africa business to Arçelik.

Commenting on the announcement, chairman and chief executive officer of Whirlpool Corporation Marc Bitzer said: “Today’s announcement marks yet another major and important milestone in our ongoing portfolio transformation.

“This allows us to participate in significant value creation from the repositioning of the business and cost synergies through our minority interest.”

The transaction is expected to close in the second half of 2023 and until then the company will operate as seprate entities.

This article is from: