Beko confirms it will close Yate’s tumble dryer factory this year

YATE’S historic Hotpoint UK factory will close at the end of this year, bringing to an end more than a century of manufacturing at the Station Road site.

Owner Beko Europe has confirmed that the plant will shut down on December 31, with the loss of 142 jobs.

The factory in Station Road stands on the site of the former Parnall aircraft factory, where more than 50 people were killed during two air raids in 1941, and manufacturing on the site goes back around 107 years.

After the war ended production was switched to washing machines and then tumble dryers, and it has made machines for the Hotpoint, Creda and Indesit brands under a series of owners, most recently Whirlpool from 2014.

Whirlpool UK became part of Beko Europe in a merger in April.

Within months the new company said it was consulting on closing the plant, saying it was making a “significant loss”.

Beko Europe statement

Beko Europe has now confirmed the closure, issuing a statement which said: “The consultation process announced on July 5 has now been completed and Beko Europe has confirmed the closure of the Hotpoint UK Appliances site at Yate, which will close on December 31.

“All those affected have been notified.

“We are continuing to provide support to all of our employees and are grateful for their continued efforts and engagement throughout.

“We have also notified the site’s MP and local councillors of the news.”

The news was broken to workers at the end of September.

Production will continue into December but is expected to be wound down before the closure date.

The company will then spend six months decommissioning the site, which is owned by South Gloucestershire Council.

Beko Europe says it has made workers aware of other vacancies within the business and is supporting them with employment, careers, retirement and financial advice through an “outplacement services” company.

It says it is also funding training for some workers to become forklift drivers.

Council considering use of site it bought for £10 million

The factory site was bought from Whirlpool by South Gloucestershire Council in 2021 for just under £10 million.

A council spokesperson said: “The council is actively supporting the current workforce through the Yate Development Worker, who is coordinating support and liaising with the Beko team to provide employment coaching and support for employees as well as exploring the opportunities to provide skills training to the workforce to support their future employment.

“Looking forward, we are keen that however the land is used in the future, it is for the benefit of the whole community, reflective of the site’s history and having regard to the aims and objectives of the Yate Masterplan, which we published in 2023.

“In the coming months we will consider how the existing site and facilities, which is close to road and rail links, the busy town centre and existing homes, could be used.

“Any repurposing of existing facilities, or redevelopment, will take time and funding, but planning for the future of the site will be of strategic importance for the town of Yate and South Gloucestershire.

“In due course we will want to have conversations with our communities about the options, and we will engage closely with local residents, businesses and other stakeholders to ensure the site plays an important role in the future of the town.”

At the time the council bought the site Whirlpool insisted it was “totally committed to Yate”.

The council’s then Conservative cabinet member for corporate resources, Ben Burton, said the deal fitted the council’s “long-term aspiration…to be an enabler of regeneration” and would “ensure that we have a degree of control over its future use, should the current occupiers wish to relocate in the future”.

Beko Europe first announced its closure plan July 5, as results of this year’s general election were still coming in.

‘A big blow’ for Yate

Thornbury and Yate MP Claire Young – who was elected in the early hours of that day and met with Beko later the same morning – said the closure of the factory was “a big blow for the town”.

Ms Young said: “Manufacturing on this site has been such a core part of the town’s history, employing many local people who are now worried about the future.

“I met with Beko on my first day as an MP, and I will continue working with the workers and their union to ensure those affected are properly supported.”