• Interruption to washing machine production takes strain off warehouse capacities

• Necessary response to slump in orders in January

• No signs of need for prolonged stoppage

Due to a significant decline in orders and the resulting risk of overstretching warehouse logistics, an interruption to production at the Gütersloh appliance factory (GTG plant) has become unavoidable. After production of washing machines was stopped here last Friday and on Monday, a 6-day period of short-time working began after today's early shift. The necessary agreement with the Works Council was signed this morning. Production is scheduled to resume on Thursday, February 9 (early shift).

Over the past three years, the Miele Group has produced and sold more appliances than ever before. In 2022, for the first time, more than one million washing machines and tumble dryers were manufactured in a single year. Now, however, the general economic slump is taking its toll here as well. This effect has been exacerbated by the fact that many dealers had recently stocked up in anticipation of a price increase announced by Miele. Miele itself also engaged in stockpiling to be adequately prepared for disruptions in the supply chain as well as to even out fluctuations in demand.

In fact, the macro-economic situation has curbed demand for domestic appliances to such an extent that retailers are currently reducing their own stocks. Short-time working now announced for Gütersloh serves to temporarily ease the strain on Miele's warehouse logistics. Around 1,300 employees currently work in production at the GTG plant, of which just under 1,000 are affected by short-time working.

Due to the development described above, other Miele plants will also have to review their production planning figures and, if necessary, make temporary adjustments. This applies, for example, to the washing machine plant in Ksawerów, Poland, dryer production in Uničov and the component plants in Euskirchen (motors) and Warendorf (plastic parts). However, this does not automatically equate to short-time working. Discussions are also underway with the local works councils. However, there are no indications of the need for prolonged short-time working in Gütersloh or at any of Miele's other locations.