Baxi Heating UK has announced proposals for a reorganization of its UK business. The intention is to grow the 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.
It has 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 to deciding to close the Preston foundry in 2019.
Closure of Norwich site
The closure of the foundry will create additional space at the Preston site, and therefore proposing to transfer the production of water cylinders and electric water heaters for Heatrae Sadia and Megaflo brands, from smaller Norwich site to Preston.
The proposed closure of the Norwich site would also result in the consolidation of R&D activity at Preston
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.
Need for Investments
This proposal would require significant investment in the Preston site and is supported by the parent company, BDR Thermea Group. It would result in an overall increase in employment on-site. Simultaneously, Baxi proposes to simplify the sales organization.
Feedback from the customers suggests that they want to do business with suppliers that offer combinations of different products and brands, but with fewer points of contact. It wants to reflect this and anticipate future changes in customer preferences and market needs, by consolidating the sales organizations into two areas of focus, namely residential and commercial.
Integrating the teams
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.
We recognize that these actions will have significant implications for our colleagues in Norwich and Preston. However, we 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.
