Turkey Based Arcelik to Sell its Washing Machine Factory in China

Arcelik is one of the leading companies working in the sustainability sector currently. The company recently achieved the status of becoming carbon-neutral in global production with its carbon credits. From the beginning, the company has believed in fighting the climate crisis which gave it the position it carries today.

The plans that the company has moved forward might be quite different than what one would expect. The washing machine factory they had in Ankara, Turkey is now being sold to a local company.

Primarily involved in the manufacturing of Turkish white goods, Arcelik only recently announced that their China-based subsidiary, Beko Electrical Appliances will be moving forward with a deal under which the plan is to sell the washing machine factory under the company’s name.

The washing machine factory located in Changzhou city will now have different ownership, specifically being the local company Jiangsu Konka Smart Home Appliances Co. Ltd. The entire deal has been planned to be settled for an amount of 112.55 million Chinese yuan ($16.6 million/14 million euro).

Arcelik operates in over 150 nations across the world but the new plan seems to be hinting towards moving out of China. The reason behind the decision hasn’t been cleared by Arcelik or Beko Electrical Appliances personnel yet and the only known specifics are that the deal will soon be in motion.

Under the agreement that will be signed between the two white goods companies will also allow Jiangsu Konka Smart Home Appliances Co. Ltd. to use the land where the factory is currently located in China. This will be with the inclusion of any fixed assets that are present on the grounds of the facility currently. The entire operation of the facility will be handed over to the new ownership soon.

Arcelik has only informed them that they will be signing the asset transfer agreement soon enough to complete the deal as it progresses over the next three months. In the entirety of three months, complete operations of the facility will be handed over. Many details of the agreement are still subject to closing conditions.

As for the fate of Beko Electrical Appliances, the company will now be involved in selling and marketing of products which will be imported by the parent company Arcelik from anywhere outside China. It might be a step in the right direction as 70% of the profits earned by Arcelik come from its international market. Focussing one of its brands on the same would add on to it.

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Mickey Sampson

Mickey Sampson is a PHP Developer who is skilled at coding, analytical approach, and database design having a deep understanding of Core PHP, Magento, WordPress, and different latest technologies. Either he keeps himself busy in building new and one of a kind apps or playing with his pets - an animal lover, who has 7 different animals residing with him.

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