Job loss fears dismissed: Whirlpool SA sale

The owners of one of the largest factories in the Ilembe region, Whirlpool Corporation, recently sold its operations in South Africa, creating fears of job losses locally.

The appliance maker confirmed last week that they had entered into an agreement on June 28 with the new ownership group, whose identity they are not able to reveal until the transaction is complete, only saying it was comprised of former executives.

Whirlpool South Africa told the Courier that the new ownership group will continue to market and distribute their other brands in South Africa and surrounding countries – including the Whirlpool, Indesit, and Ariston brands.

Employees (including those at the Isithebe plant) will continue to work with the new company. Whirlpool SADC managing director Michele Caputo, said their customers had no reason for concern.

“We will continue to serve them to the best of our ability until the transaction is approved, which we expect to occur during the third quarter of 2019, following customary regulatory reviews and approvals.

“Having this in mind, until the process is concluded we will keep running the business as usual and we will work with the new company to support the transition process.

“Moreover, we have reached an agreement with the new owners of the KIC brand that will be able to help anyone who has a problem with an existing Whirlpool or KIC product,” said Caputo.

He said this transaction was consistent with the public statements Whirlpool Corporation previously made about the desire to sell its South African operations and focus on its core European business in Europe.

iLembe Chamber CEO, Cobus Oelofse, said the decision by an admired global brand with a long association with the district and country, such as Whirlpool, to dispose of its South Africa operations calls for some reflection and introspection, specifically around favourable environments that will realise our country’s re-industrialisation ambitions.

“On the other hand it is a hugely encouraging reminder about the value associated with local industry and the need for focussed efforts from all the social partners in the country to ensure that this worth is kept local, preserved and allowed to grow.

“The potential of the household appliance manufacturing sector, specifically in KZN and as a foreign exchange earner, is significant and I trust that the support, by all stakeholders, of the new owners are reflective of this potential,” said Oelofse

He said the engagements the Chamber had regarding the sale were encouraging, and that it was reassuring that the new owners would be able to rely on the very capable local executive, and competent management and workforce teams, to continue to support its operations in South Africa.

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