Beko Europe has announced that its subsidiary Hotpoint UK Appliances will enter a consultation that could result in the closure of its Yate site near Bristol. Following consultation, the closure of the Yate site could result in approximately 150 positions becoming redundant.
The site currently produces tumble dryers for the UK and Ireland markets. In recent years, these products have become less popular with consumers in favour of more advanced and energy-efficient heat pump technologies. EU legislation will soon ensure new tumble dryers will need to be produced with heat pump technology, and this legislation is also likely to be adopted by the UK in the future.
Beko Europe’s proposal, subject to consultation, is that it is not technically or economically feasible to remodel the Yate site to continue operations. It is for these reasons that Beko Europe has announced that its subsidiary will enter into a consultation to explore potentially closing the facility.
All of the team at Yate will continue to be employed by the company on full pay and benefits while the process is ongoing.
Teresa Arbuckle, regional MD (UK and Ireland) at Beko Europe, said: “We know this news will be difficult to hear for our employees, on-site contractors, and the whole community. The Yate site has a superb workforce, with real commitment and strong leadership, and we are grateful for their continued efforts during this challenging time.
"The facility has been operating at a significant loss for some time, and over the past few years, despite continued investment in the site, demand for the appliances produced here has rapidly decreased as consumers purchase more advanced and energy efficient models.
"Pending consultation, if positions are made redundant, Beko Europe will do all we can to support the employees who may potentially be affected. Employees continue to have access to the usual support from HR, business leaders and the Employee Assistance Programme but should the proposal to close the site go ahead, the business would look to provide additional outplacement and other relevant support.
"We have contacted the site’s new Member of Parliament and South Gloucestershire Council, and we will listen carefully to the local community as the consultation processes progress.”
