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Türkiye's Arcelik to halt refrigerator production in Thailand amid shrinking sales

Arcelik logo displayed on a store sign in Antalya, Türkiye, February 2, 2024. (Adobe Stock Photo)
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Arcelik logo displayed on a store sign in Antalya, Türkiye, February 2, 2024. (Adobe Stock Photo)
November 22, 2025 03:17 PM GMT+03:00

Turkish home appliances producer Arcelik announced that it will cease operations at its refrigerator manufacturing facility in Rayong, Thailand, by Dec. 1, as part of the company’s broader global efficiency and optimization strategy.

According to a company disclosure, the decision will result in the transfer of production capacity to other Arcelik-operated facilities and is not expected to have any unforeseen negative impact on total production volume or sales performance.

411 jobs to be terminated, $3M severance cost projected

The closure will result in the termination of 411 workers at the Rayong plant, with Arcelik allocating approximately $3 million for severance and notice compensation.

The company emphasized that this restructuring step is intended to enhance operational efficiency and is part of an ongoing realignment of its global operations.

Arcelik’s Rayong plant, launched in 2015 with a $100 million investment, had an annual output of 500,000 refrigerators and exported to 46 countries, according to the company's previous statements.

A general view of an Arcelik production facility in Türkiye. (AA Photo)
A general view of an Arcelik production facility in Türkiye. (AA Photo)

Arcelik feels strain as white goods market cools

The plant closure comes at a time when Türkiye’s white goods sector is under pressure from weakening domestic and international demand. In the first half of 2025, domestic appliance sales in Türkiye declined by 8% year-over-year, while exports fell by 5%.

Arcelik reported ₺379.26 billion ($8.96 billion) in revenue for the first nine months of 2025, marking a decline of more than 5% compared to the same period last year, driven by rising costs and softer global demand.

Founded in 1955 and headquartered in Istanbul, Arcelik—a subsidiary of Türkiye's largest conglomerate, Koc Holding—is one of the country’s leading manufacturers of home appliances and consumer electronics.

The company operates in more than 100 countries with 46 production facilities across 14 nations and employs approximately 55,000 people worldwide.

It offers a range of products—including refrigerators, washing machines, vacuum cleaners, and televisions—marketed under multiple brand names such as Arcelik, Beko, and Grundig.

November 22, 2025 03:17 PM GMT+03:00
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