Appliance manufacturer BSH has announced plans to close two of its factories in Germany, putting up to 1,400 jobs at risk as part of a wider restructuring of its production network.
In a stark warning for the kitchen appliance sector, the company said it does not expect “any significant market growth in the foreseeable future,” prompting a need to reduce manufacturing capacity in its home market.
BSH cited several factors behind the decision, including a prolonged market downturn, a stagnant housing sector, shifting consumer behaviour, and growing demand for lower-priced appliances.
Under the proposals, washing machine production at its Nauen facility in Brandenburg will be phased out by 2027, while the Bretten site—responsible for stoves and extractor hoods—is set to cease operations by the first quarter of 2028. The company employs around 57,000 people globally.
Despite the closures, BSH confirmed it will continue supplying washing, cooking, and extraction products from other European manufacturing sites.
Uk independents reacted to the news with skepticism, given that in recent days BHS had appeared to indicate that all was well and that the supply of its brands
Bosch, Siemens, Gaggenau and Neff were not at risk following the collapse of Waterline, one of the UK's leading appliances suppliers.
Jeff Russell of GermanKitchensLondon, whom is a regular user of Siemens, Gaggenau and Neff in his kitchen designs states "...its all a bit worrying in that on one hand BHS says all is well but closing two sites, shedding jobs and confirming you dont see any market growth in the foreseeable future only compounds the worry us independents feel generally about the state of the UK kitchen market"
BSH chairman Matthias Metz said the decision had been made only after extensive review, acknowledging the uncertainty it would create for employees. He stressed that the move is necessary to maintain the company’s long-term competitiveness and financial stability.
HR director Thorsten Lücke added that the company is committed to working closely with employee representatives to ensure socially responsible solutions for those affected.
The announcement comes despite significant recent investment in Germany, with BSH spending approximately €300 million over the past three years on product development and automation.
Earlier in the year, the company reported solid financial performance for 2024, achieving turnover of €15.3 billion—an increase of 3% year-on-year, or 7.5% when adjusted for exchange rates—despite challenging market conditions.
Meanwhile, BSH continues to expand internationally, having recently opened a new stove manufacturing facility in Cairo, Egypt, following a €50 million investment. The site marks the company’s first production plant on the African continent
BHS - Bosch, Siemens, Gaggenau & Neff
Other Kbb News: BiKBBI rebrands as the BIFIS / Wren sheds 500 jobs amid £15m net loss / German kitchen industry shows signs of recovery / Administrators give insight into the collapse of Waterline /
