System-ID: s_7_0

Production

Restructuring the production

Home Appliances Division

Gorenje's biggest location for manufacturing large home appliances is situated in Velenje, where more than 70 percent of products were manufactured last year. Further, the manufacture of cooking appliances is carried out also in Mariánské Údolí in the Czech Republic, while refrigerators, freezers and cooling equipment are produced in Valjevo in Serbia.

The manufacture of washers and dryers is carried out within the controlling company at the production location in Velenje and by taking over the Asko Group, Gorenje acquired its first own factory for producing dish washers. Asko manufactures dish washers and dryers in Var in Sweden while cooking appliances, ovens and ironing systems in Lahti, Finland.

Gorenje Tiki, d.o.o. manufactured the programme of thermic and heating appliances in Ljubljana and in Stara Pazova (Serbia) but at the end of 2010 the manufacturing plant in Ljubljana was closed due to high production costs and the entire production was moved to Stara Pazova.

In compliance with its strategic policies envisaging a partial production internationalisation in form of moving the production of lower priced appliances to low cost countries and keeping the production of products with higher added value in Slovenia, the Managament of Gorenje adopted a decision at the start of 2011 on making investments in the production capacities of Zaječar in Serbia.

The industrial complex in Zaječar includes two manufacturing halls with a total area of 18,000 square meters, standing on a property of 14 hectares. The halls will host Gorenje's assembly line for washing machines and driers at the complex. All washing machines and dryers will still be manufactured at the controlling company plant in Velenje; however, assembly of appliances bound for sale in Serbia and some Eastern European countries will take place in Zaječar, which will allow reaping the advantages of a free trade agreement that Serbia has signed with Russia and some other countries in the region. As a result, Gorenje will boost their sales in these markets which are highly important for the Group's profitability.

In addition to the above-mentioned, the Division includes also:

  • two supporting programmes which manufacture in-built components for home appliances: 
    • the Mekom mechanical component programme carried out within the framework of the controlling company and at production locations in Velenje, Šoštanj, Bistrica ob Sotli, and Rogatec,
    • the IPC programme (entrepreneurial centre for disabled persons) carried out within the framework of the Gorenje I.P.C. company, with programmes at locations in Velenje and Šoštanj;
  • a factory for the manufacture and assembly of wheeled vehicles, Indop, d.o.o., in Šoštanj. This activity shall in 2011 be moved to the Ecology, Energy and Services Division.
Interior Home Division

The production activities of the Interior Home Division were conducted at a lower number of locations that are specialized for individual product. The Division hereunder consists of five production programmes, namely the kitchen programme, the furniture programme, the bathroom programme and the ceramics programme with locations in Velenje, Šoštanj, the village Gorenje and Maribor. The year 2010 saw a significant optimisation of production processes, whereas also materials and semi-finished products were unified at several production locations and sales programme were refurbished.

With these measures Gorenje aims at fully utilising the synergies between the programmes, increasing the cost efficiency, lower the cost of materials via unification and, last but not least, lower the level of operating assets.

At the beginning of 2011 Gorenje started with activities to set up a manufacturing plant for plastic bathroom basins in Zaječar (Serbia) since the basin production at the existing Šoštanj plant is no longer economically viable. Relocating this part of the production programme to Serbia will result in reducing the number of employees at Gorenje’s Home Interior Division company in Šoštanj from 132 to approximately 50 presumably in the second half of the year.