A tumble dryer factory in South Gloucestershire could be closed down, putting 150 jobs at risk. Beko Europe confirmed that its subsidiary – Hotpoint UK Appliances – has entered consultation with staff over its facility in Yate.
The site currently produces tumble dryers for the UK and Ireland markets.
Beko said its products had become “less popular” with consumers who now favoured more energy efficient appliances. It also said the UK was “likely” to adopt EU legislation that means new tumble dryers need to be produced using heat pump technology.
“Beko Europe’s proposal, subject to consultation, is that it is not technically or economically feasible to remodel the Yate site to continue operations”, the company said in a statement. “It is for these reasons that Beko Europe has announced that its subsidiary will enter into a consultation to explore potentially closing the facility.”
Beko said staff at Yate would be employed by the company on full pay and benefits while the process was ongoing.
Teresa Arbuckle, regional managing director (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.”
Beko Europe said it would support employees who may potentially be affected.
Unite regional officer John Sweeney said: “The union will be ensuring our members’ best interests are the priority and demanding Beko leaves no stone unturned in seeking alternatives to closure. The potential closure of the Hotpoint factory is deeply worrying news all the workers employed at the site. Unite will now be offering support to our members and entering consultations with the company.”
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Claire Young, Liberal Democrat MP for Thornbury and Yate, added: “The news will have come as a shock to people, this site has been a local provider of employment for more than 100 years so it has a special place in Yates history.”
The site first opened in 1917 as an aircraft repair centre and is currently a manufacturing facility for tumble dryers.