European appliance maker BSH Bosch und Siemens Hausgeräte GmbH has reversed its decision to shut down its washing machine plant in Berlin, Germany following a union agreement on more flexible working hours and bonus cuts, Die Welt newspaper reported.
"We can imagine that we will continue making washing machines in Berlin beyond the end of 2006," Kurt-Ludwig Gutberlet, head of BSH, said.
The factory has about 1,100 employees.
The company said that it is also planning to invest 500 million euro (approx. U.S. $602 million) in the German home appliance market in hopes of an increase in consumer demand.
"We are optimistic there will be a turnaround in the industry," said Gutberlet. "Households have a lot of backed-up replacement need."
Gutberlet said he sees the household goods industry posting 1 to 2 percent growth next year, after 8 consecutive years of shrinking sales. (AFX, Forbes)
to Daily News