German manufacturer of household appliances Miele (Gütersloh; www.miele.com) is planning to expand its washing machine production. For the first time, it will build a plant in Poland in addition to its existing European ones in Austria, the Czech Republic and Romania. The company hopes this will relieve the pressure on washing machine production at its main plant in Gütersloh / Germany, which is working at its capacity limit. Miele will also invest in an expansion and modernisation programme there.

The reason for the expansion is primarily a healthy sales situation. Turnover in the 2015/16 financial year (30 June) climbed 6% to EUR 3.71 bn. In the current fiscal year, the number of washing machines sold could exceed the 900,000 mark for the first time.

Where exactly the Polish plant will be built is not yet clear. Several locations are being examined, said a Miele spokesman. The intention is to start building in autumn 2017 or spring 2018. A "medium double-digit million euro sum" will be invested in production, including plastics processing and assembly lines. Miele will create a total of 350 jobs by the time it goes on stream in 2020.

The specialist for high-priced domestic appliances emphasised that there are no plans to relocate jobs and production plants from Germany to Poland. The main advantages of the new Polish site will be its proximity to Germany, its good infrastructure and favourable cost situation. Miele also told Plasteurope.com the project will give it "greater scope in the model and pricing policy, especially in the entry-level segment." Consequently, it is probable that with the start-up of the Polish plant, the assembly of low-priced models will be moved out of Germany. The freed-up capacity would then make more space for high-end washing machines.

With its expansion in Poland, Miele is in good company. The majority of household appliance manufacturers are already represented in the country, where they have production facilities and often have plans to expand them (see Plasteurope.com of 17.01.2017). Only recently, Whirlpool (Benton Harbor, Michigan / USA; www.whirlpool.com) announced the restructuring and modernisation of its three plants in Wroclaw, Lodz and Radomsko (see Plasteurope.com of 01.12.2016). Electrolux (Stockholm / Sweden; www.electrolux.com) and BSH Hausgeräte (Munich / Germany; www.bsh-group.de) are also represented in the Polish market, as are South Korean competitors, LG (Seoul; www.lg.com) and Samsung (Seoul; www.samsung.com).