Tuesday, 29th October 2019, Velenje

Hisense to found a company headquartered in Slovenia to manage all European operations

Hisense to found a company headquartered in Slovenia to manage all European operations

Since the takeover, a number of integration activities have been under way at the Gorenje Group to make its merger with Hisense Group's global organization as seamless as possible. As announced by Hisense upon acquisition, Gorenje and Slovenia are to become the centre of all Hisense Group's European operations. As the integration process continues, Gorenje Group is thus being further reshaped from business and organizational aspect. In the next step, this shall include separating the manufacturing part of the Velenje-based company from the administrative part of the company that will have its seat in Ljubljana.

Adjusting the organizational structure to the new business environment within which we operate as a part of the Hisense Corporation requires further optimization of efficiency and a leaner functional organization of the Gorenje Group, fully in sync with Hisense Group's organization. The final steps of the integration also include separation of the Gorenje's manufacturing part from the administrative part of the company, establishment of shared regional service centres, and merging of international sales units.

In the process of Gorenje Group's reshaping, we shall separate Gorenje's manufacturing part from the administrative part by transferring all corporate support functions for the entire European part of the Hisense Group to the company Hisense Europe that will be headquartered in Ljubljana. Thus, Hisense will – as announced upon takeover – make Slovenia the headquarters for managing all of its European operations, while the company Gorenje d.o.o. will only include production in Velenje and its subsidiaries. Employees whose jobs are related to management will become employees of Hisense Europe; however, some functions will remain in Velenje.

Due to unfavourable situation in the labour market and problems with recruiting suitable human resources, we shall, in order to keep as many jobs as possible, also establish some shared functions at Velenje offices and organize them as shared services and competence centres for the entire Europe/Hisense Group, while shutting down these same functions in other countries where costs related to them are higher. Call centres will also be regionally organized, in four locations for all of Europe.

Moreover, we shall complete the integration of Gorenje and Hisense sales business units in respective markets in Europe and the CIS region. These units will henceforth be combined in a single company, also in terms of their legal status.