Haier Europe: agreement signed with trade unions for repurpose of Brugherio production site
Haier Europe today signed an agreement with union representatives (OO.SS. and RSU) regarding the Brugherio production site repurpose project. The agreement follows the meeting on January 20, during which the company presented the business transformation plan for Europe to unions and informed them of the need to cease washing machine production activities at the plant as of June 30.
The repurpose project is aimed at ensuring important employment continuity and preserving the role of the site and Italy for Haier’s European and global operations.
The project, which will be structured in several phases starting July 1, will aim to transform the Brugherio plant into Haier Europe’s Service Hub, the strategic center dedicated to spare parts that will serve the markets in which the company operates.
Specifically, the project involves the consolidation in Brugherio of logistics activities, including receiving, storage, packaging, and shipping. The site will play a crucial role in Haier Europe’s commitment to environmental sustainability, including through the production and preparation of kits, reconditioning and refurbishment of home appliances.
As a result of the repurpose plan, the plant will have a storage capacity of about 50,000 pallet spaces, spread over an area of 44,000 square meters. To support this transformation, Haier Europe has planned an investment of between 6 and 9 million euros, confirming the strategic importance of Italy for the group.
With the conversion plan for the Brugherio site and the start of Service Hub activities, the company expects to employ about 110 of the 160 employees currently working at the production site. Haier Europe remains fully aware of its responsibilities to employees, their families and local communities. That is why the company is committed as of now to offer full support to the redundant workers with all possible tools with the aim of minimizing the social impact. These include exit incentives, early retirement opportunities, retraining paths and dedicated projects for external relocation.
In addition to the Service Hub, Brugherio will continue to house the European Headquarters (HQ) – with the offices in Vimercate – the Milan Experience Design Center, and research and development labs dedicated to connectivity and the Internet of Things, supporting all product lines, for a total of about 900 people.
Beyond the Brianza area, Haier will continue to have a presence in Italy at sites in Treviso area, specializing in the HVAC (air conditioning) business, and Bassano del Grappa, to produce Elba-branded ovens and cooking products.
The rationalization path undertaken by Haier Europe comes in response to the delicate context involving the household appliance industry at the European level. As shared with the unions, the last three years have seen a significant contraction in demand accompanied by a gradual erosion of margins. This situation has been further exacerbated by geopolitical tensions and inflationary pressures, which have negatively affected consumer confidence, necessitating structural measures.
