Appliance giant BSH has announced plans to close two of its German factories, with up to 1,400 employees set to lose their jobs if the closures go ahead.
In a chilling warning for the kitchen industry as a whole, BSH said that “no significant market growth is expected in the forseeable future”, and as such, it must adjust the capacities of its production network in Germany.
The global appliance company blamed a host of factors for the decision, including: “the persistently declining market trend, stagnating real estate markets, changing purchasing behaviour, and increased demand for lower-priced appliances.”
The company will phase out washing machine production at its Nauen site in Brandenburg by mid-2027, with its production of stoves and extractor hoods in Bretten set to end by the first quarter of 2028. The company is estimated to have 57,000 employees worldwide.
According to the company, following the closures, it will continue to supply washing, cooking, and extractor hood product categories from other European plants.
“We are aware that such a step is fraught with concern and uncertainty. We are not making this decision lightly,” insisted Matthias Metz, BSH chairman. “It is the result of intensive, careful, and comprehensive review. This step is necessary to safeguard our future viability and competitiveness.”
Similarly, BSH’s director of human resources, Thorsten Lücke, added: “We are aware of our responsibility towards our employees and are determined to work with employee representatives to find socially acceptable solutions for the affected employees.”
BSH says it has invested around €300m in its German sites in the last three years alone, specifically into its product range and automation.
Earlier this year, BSH reported achieving healthy turnover growth in 2024, saying it “successfully held its own in a challenging market environment”. According to the appliance manufacturer – which owns the Bosch, Siemens, Gaggenau and Neff brands – it pulled in turnover of €15.3bn (roughly £13.2bn) in the most recent financial year. This represents growth of 3% over the previous year, or 7.5% if adjusted for exchange rate effects.
Despite plans to close these two factories, BSH recently opened a new stove factory in Cairo, Egypt, after a €50m investment – the company’s first-ever plant to open on the African continent.