Production and Products

Production

The central location for the production of large household appliances for Gorenje is in Velenje (Slovenia). Production facilities are also located elsewhere in Slovenia and in Serbia, Czech Republic, Sweden and Finland.

Strategic policies of Gorenje's management have envisaged relocation of the production of products in lower price brackets to cost-effective countries, and maintenance of production of products with higher added value in Slovenia. The activities focused on the achievement of objectives set in the strategic plan for the period 2012-2015 include also the relocation of the production of cookers from Lahti in Finland to the factory of cooking appliances Mora Moravia in Mariánské Údolí in the Czech Republic. The relocation that will be completed in September 2012 is part of a process of restructuring production locations, which will optimise production costs and strengthen our competitiveness.

Serbia has become an increasingly important production country. Fridge-freezer appliances are produced in Valjevo, water heaters are produced in Stara Pazova, and a factory for the production of sanitary equipment and assembly of washing machines was opened in Zaječar in March of this year. Since autumn 2011, the factory has successfully operated and employed 96 staff. Through the end of this year, 70,000 washing machines and 30,000 wash basins will be delivered from this factory to the markets. The Government of the Republic of Serbia has supported the investment of Gorenje by offering grants amounting to EUR 10,000 per employee.

The production of large household appliances includes also the programmes producing built-in components:

• the programme of Mekom mechanical components in production sites in Velenje, Šoštanj, Bistrica ob Sotli and Rogatec,
• the IPC programme (Disabled Entrepreneurial Centre) with the programmes in Velenje and Šoštanj.

Home Interior Division

The production of the Home Interior Division was concentrated in only three locations.. They are specialised in separate products, in Velenje, the village Gorenje and Maribor. The Division includes five basic production programmes: kitchens, components, bathrooms, ceramics and furniture. At the end of the year 2011, the plant in Šoštanj was closed and the production of sanitary equipment was relocated to Zaječar in Serbia.

These measures improve exploitation of synergies among the programmes and increase cost-effectiveness.

Quality

Gorenje takes care that production facilities have a quality system that have been certified in accordance with the ISO 9001 standard. In 2011, this system was introduced to GAIO d.o.o., the new company within the Group. In 2012, this certificate will also be obtained for the newly opened facility in Zaječar, Serbia. An accredited laboratory of analytical chemistry that complies with certificate SIST EN ISO/IEC 17025 has operated in the scope of the production.

Product development

Washers / dryers

Our largest project in 2011 was the development of a new platform of NG PSSP-10 washers/dryers for the medium price class , which we had been working on since 2009. Within the scope of the project, we developed new technology for drying clothes using a heat pump, substantially reducing energy consumption. The product is equipped with an extremely efficient, built-in processed air filtering system, fibre-levelling technology employing an IonTech air ioniser, and drying technology employing SteamTech steam. Other noteworthy features of our washers include user-friendly interfaces, an innovative washer group with built-in BLDC engine enabling effective washing with high efficiency ratings, and a new washer door design with ergonomic opening. Production of the dryers began in the autumn, and washers with a wash load capacity of up to 7 kg went into production at the end of the year. In May 2012, we will introduce washers with higher wash load capacities of up to 9 kg.

Cooking appliances

Most of our development resources in 2011 were focused on pre-development activities for a project involving a new platform of compact (height 45 cm) and standard (height 60 cm) built-in BIO 45/60-14 ovens. These ovens will be intended partly for the medium price bracket and, above all, for the upper medium and high price brackets. This highly complex project involves the development of technologies that Gorenje has not been familiarized with to date. The products from the first phase of this project will be on the market by the end of 2013, and those products from the second phase of this project will become available a year later. We have been engaged in the development of an innovative technology, IQook, that features automatic cooking and roasting. This technology was presented at the IFA fair in Berlin in September 2011, and will be available in induction cookers during the first half of 2012. The development of induction hobs is our permanent task, as this technology is rapidly replacing classical radiant heaters. We have worked to develop a new generation of base segment induction hobs – these products will be available in the first half of 2012. The development of a unique electronic timer that is integrated into the control button of a gas cooker (SimplOff) has been a smaller, yet very important, project for markets where gas is the main energy source.

Refrigerators / Freezers

We completed the development of a new generation of freezers with improved energy efficiency, due to a newly developed cooling system, and began production during the first half of 2011. Most of our development activities in the area of refrigerators/freezers have focused on improving energy efficiency and optimising existing product costs.
We began developing a new platform of independent refrigerators/freezers, with widths of 60 cm, for the medium and higher price brackets. Special emphasis is placed on attaining energy efficiency and developing innovative solutions while constantly ensuring our product's cost-competitiveness. These products will appear in the market in two phases – during the spring of 2013 and the spring of 2014. In the last quarter of 2011, we began developing a new generation of built-in refrigerators/freezers with widths of 54 cm. The products from the first phase of this project will be on the market by the end of 2013; those from the second phase will reach the market by the end of 2014.

Heating systems

During 2011 we completed the majority of our development activities and began regular production of our low-temperature heat pumps. Activities are under way for a project involving high-temperature heat pumps that will be on the market in the first half of 2012. We have also been actively involved in the development of heat pumps for heating sanitary water. Our most important projects in the area of water heaters include our so-called SLIM water heater (production is planned at the end of the first half of 2012) and SMART electronics project, which will enable water heaters to consume substantially less energy.

In the future we see our main opportunities in the development of energy-efficient components, which will be incorporated into our products. New materials is also an area where we see potential to improve the functionality and energy efficiency of our products. Gorenje particularly sees opportunities in the development of solutions that simplify the use of its products (user interfaces, connectivity, etc.).