Hotpoint, a subsidiary of the newly-created company Beko Europe, is considering closing its appliance production facility in Yate, Bristol, putting roughly 150 jobs at risk of redundancy.
According to the company, it has entered into a consultation about the manufacturing site, as it is “not technically or economically feasible to remodel the Yate site to continue operations” to meet proposed legislation about heat pump products.
Beko says that tumble dryer appliances have become less popular with consumers in the UK and Ireland in recent years, as they are more interested in pursuing energy-efficient heat pump technologies.
The company also says that EU legislation will soon ensure new tumble dryers will need to be produced with heat pump technology, and it believes that this legislation is also likely to be adopted by the United Kingdom in the future.
Hotpoint has reassured employees that its Yate production staff will continue to be employed by the company and receive full pay and benefits while the consultation process is ongoing.
Teresa Arbuckle, Beko Europe’s regional managing director for the UK and Ireland, said that she was aware that the news will be difficult to hear for the company’s employees. She said: “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.”