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Aarburg, 4/4/23

Franke Home Solutions consolidates competencies in Europe

Franke Home Solutions, a division of the Franke Group, is streamlining its product portfolio and consolidating the competencies of its production sites for stainless steel sinks in Europe to reinforce its strong market position. Franke's established site in Peschiera del Garda (Italy) will therefore become the center of excellence and central production location in the medium term. Significant investments are planned to strengthen the site. Consequently, production is planned to be discontinued in Warsaw (Poland) and Bad Saeckingen (Germany). A competence center for stainless steel bowls and worktops will also be established in Aarburg (Switzerland). This will create the necessary conditions for the design and manufacture of high-quality products for the residential kitchen and provide the division with a competitive edge.

Franke Home Solutions consolidates competencies in Europe PDF (257 KB)

Franke Home Solutions is well positioned in its core markets. Lifestyle changes and global market trends, such as urbanization, more flexible use of living spaces and kitchens, and also greater sustainability leading to a reduction in the use of energy, raw materials and water, are supporting the division’s further growth. Stainless steel will thereby continue to play an important role in the kitchen of the future. Its durability and recyclability contribute to the circular economy and sustainable construction. 
           
The vision of Franke Home Solutions is to be present with at least one Franke product in every household. To achieve this, the division aims to grow faster than the market, with a strategy whose drivers and main success factors are an agile, efficient and strong organization combined with an attractive and innovative portfolio in the mid- to high-end segment, and global competitiveness. This strategy has been consistently implemented worldwide in recent years.

 

Global product leadership as the primary objective
 
As part of this strategy, Franke has decided to strengthen its presence in Peschiera del Garda (IT), transforming Franke S.p.A. into the center of excellence and central production site for stainless steel sinks in the EMEA region. In the future, a new generation of premium products for the kitchen will be produced in the plant.

 
To make this possible, Franke will invest around 80 million euros in technology, automation, digitalization and sustainability at this long-established site. At the same time, it will promote employee training and development to meet the high demands of a European competence center. These investments will enable efficient production that ensures long-term competitiveness and strengthens Franke's market leadership in stainless steel sinks in Europe, Africa and the Middle East.  

"Our ambition is to offer the best kitchen products of the future at the best price. We are laying the foundations to produce them even better and more efficiently and to further expand our competitive position," says Barbara Borra, President/CEO of Franke Home Solutions. The bundling of competencies goes hand in hand with a streamlining of the portfolio – with the aim of delivering global product leadership. 
 
The production of stainless steel sinks at the Bad Saeckingen (Germany) site is planned to be discontinued. This would affect about 30 jobs. The reduction is to be absorbed as far as possible through natural staff turnover. Further details on timelines and conditions will be agreed with the Works Council. The location, with around 500 employees, remains of primary importance to Franke. 
 
The production of stainless steel sinks in Warsaw (Poland) is also to be discontinued. This adjustment is to be implemented at the end of August 2023. It would result in a reduction of 20 jobs out of a total of 550 employees Franke employs in Poland, and it will be carried out in the most socially responsible way possible. Poland also remains a strategic market for Franke.
 
Aarburg (Switzerland) will become the center of competence for the production of stainless steel bowls and worktops. Further investments will be made at the site to ensure long-term competitiveness. Production of selected welded sinks will also be relocated to Peschiera del Garda. The transformation in Switzerland will not entail any job reductions.


Customers benefit from optimized production processes and more closely coordinated service structures
 
Continuous optimization will create added value for all stakeholders in the medium and long term. Customers will benefit from an adapted product portfolio and optimized processes as well as from the bundling of  strengths, for example through faster and more efficient delivery processes.

 

Franke Home Solutions is a division of the Franke Group and the world's leading provider of intelligent systems and solutions for the private kitchen. The division is active worldwide and employs around 4,500 people in over 30 countries, generating sales of more than CHF 1 billion. The product range covers all areas in the kitchen – from food preparation and cooking to disposal, cleaning and air treatment, expanding towards the entire home. Franke Home Solutions offers the consumer an unlimited home experience – simple, hygienic and environmentally friendly. Find out more at franke.com.

Mythos stainless-steel bowl and stainless-steel worktop, black pearl finishing

Mythos stainless-steel bowl and stainless-steel worktop,  black pearl finishing

Mythos stainless-steel bowl

stainless-steel bowl

About Artemis

The Artemis Group comprises the Franke Group, the Artemis Real Estate Group (real estate portfolio in Switzerland and abroad), the majority-owned Feintool Group (world market leader in fineblanking technology) and the Artemis Asset Management Group (various strategic investments in international companies listed on the Swiss stock exchange and in private companies). In 2021, the group generated sales of approximately 3.3 billion Swiss francs with approximately 11,000 employees worldwide. Learn more at artemis-holding.com

 

About Franke

Franke is a leading global manufacturer and supplier of solutions and equipment for domestic kitchens as well as for professional foodservice and coffee making. The company has a global presence and employs over 8,000 people in 37 countries. Net sales in 2021 were approximately 2.6 billion Swiss francs. Learn more at franke.com

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Gabriele Hepp

Head of Communications

+41 62 787 33 58