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Mitsubishi Electric announces 400+ redundancies

UK: More than 430 workers at the Mitsubishi Electric plant in Livingston face redundancy as a result of the downturn in heat pump demand in Europe.

According to local press reports, staff were told of 436 pending redundancies on Tuesday. A letter to staff said the firm had “recently experienced a deterioration in demand due to market conditions in Mainland Europe.”

A Mitsubishi Electric Air Conditioning Systems Europe spokesperson told The Herald: “Despite seeing some growth in the UK market, the majority of our production at the site has been for mainland Europe, where there has been a widespread downturn in demand. This has led to the extremely difficult decision to begin the consultation process.”

The company insisted that it remained committed to the facility in Livingston and the manufacturing of heat pumps there, adding that it did not anticipate any effect on deliveries or supply.

Established in 1993 to produce air conditioners for the European market, the Livingston facility has been the centre for the manufacture of Ecodan air-source and ground-source heat pumps since 2009.  It currently employs over 1,600 people

The company announced a £15.3m investment in the factory in 2021 with the aim of boosting its heat pump productivity, efficiency and R&D capabilities. Scottish Enterprise provided a wide package of support, including £1.8m of grant funding. 

Related stories:

Nibe announces 340 heat pump redundancies19 March 2024
SWEDEN: Nibe has given notice of redundancy to 340 employees in Sweden as a result of weaker demand in the European heat pump market. Read more…

Mitsubishi invests £15.3m in Livingston factory4 November 2021
UK: Mitsubishi Electric Air Conditioning Systems Europe is to invest £15.3m in its Livingston factory to boost its heat pump productivity, efficiency and R&D capabilities. Read more…

European heat pump sales down 5% in 2023 – 27 February 2024
EUROPE: After a decade of increases, heat pump sales in Europe fell by around 5% in 2023 – and market analysts are expecting this downward trend to continue this year. Read more…

Nibe seeks savings after heat pump slump – 17 February 2024
SWEDEN: Swedish manufacturer Nibe has announced plans to streamline its business after latest financial figures confirm declines in the European heat pump market. Read more…

German groups warn of “alarming” slump in heat pump sales – 23 January 2024
GERMANY: As Germany celebrates record heat pump sales in 2023, the future of the market is uncertain with sales declining since last June and an “alarming” slump in December. Read more…

Heat pump sales declining in Euro/Nordic countries – 14 December 2023
BELGIUM: Despite a strong start, heat pumps sales have shrunk in some European and Nordic countries this year, according to new data from the European Heat Pump Association (EHPA). Read more…

Daikin to axe 500 jobs as heat pump demand falls – 21 September 2023
BELGIUM: Daikin Europe has said it will not renew the contracts of 500 temporary employees at its plant in Ostend, due to a sharp fall in heat pump sales. Read more…

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