The company’s intention is to grow their market positions across all brands and it is therefore important that the business prepares for the many challenges and opportunities that are presented by the UK’s heating market. They have now successfully launched a new generation of compact boilers that use stainless steel heat exchangers.
This, and the strategic decision to outsource aluminum heat exchangers used in some older boiler types, has led the company to take the decision to close the Preston foundry in 2019. The closure of the foundry will create additional space at the Preston site, and the company is therefore proposing to transfer the production of water cylinders and electric water heaters for their Heatrae Sadia and Megaflo brands, from their smaller Norwich site, to Preston.
different products and brands
This proposal would require significant investment and is supported by Baxi Heating’s parent company
These proposals, if implemented following consultation, will, regrettably, result in significant job losses and the closure of the Norwich site. The proposed closure of the Norwich site would also result in the consolidation of R&D activity at Preston and the transfer of other support activities to other Baxi Heating UK locations.
This proposal would require significant investment in the Preston site and is supported by Baxi Heating’s parent company, BDR Thermea Group. It would result in an overall increase in employment on site. Simultaneously, the company proposed to simplify their sales organization. Feedback from their customers suggests that they want to do business with suppliers that offer combinations of different products and brands, but with fewer points of contact.
residential and commercial
They want to reflect this and anticipate future changes in customer preferences and market needs, by consolidating their sales organizations into two areas of focus, namely residential and commercial. As a result, the Heatrae Sadia sales force, currently reporting into Norwich, will be integrated into the existing Residential and Commercial teams that report into Warwick and Wokingham respectively.
These changes will be effective from February 2019. Baxi Heating recognizes that these actions will have significant implications for their colleagues in Norwich and Preston. However, they firmly believe that they are necessary to make the company stronger and to place it in the best position to face the future challenges and opportunities in the UK’s heating industry.
