Monday 21 June 2021

Mabe Restructuring in Costa Rica And Lays Off 350

mabe-stove-manufacturing

Mabe, the Mexican-based global company, announced Tuesday it will no longer manufacture stoves in Costa Rica, and as result will have to lay off 350 people due to redundancies.

Mabe says it will continue to manufacture refrigerators for both the local market and export from its Heredia factory.

- Advertisement -

The company says that the Mabe brand of stoves will still be available in Costa Rica, though they will no longer be manufactured here.

The decision to cut the stove manufacturing is part of the company’s restructuring of operations. Diego Artiñano, general manager of  Mabe Centroamérica, told El Financiero, “Mabe wants to maintain its leadershiop in Central America and  it is strengthening the portfolio of products offered to consumers. This has implications for local production involving important in all areas of business reorganization“.

Atlas Eléctrica was founded in a small shack in 1967 and grew to be the first company to issue shares in Costa Rica's stock exchange in 1976.
Atlas Eléctrica was founded in a small shack in 1967 and grew to be the first company to issue shares in Costa Rica’s stock exchange in 1976.

Mabe acquired the Costa Rican manufacturer, Atlas Eléctrica in 2008 for US$72 million dollars. Three years later the Comisión para Promover la Competencia (Coprocom) fined the Mexican company US$2 million dollars because it considered the purchase created a monopoly.

- Advertisement -

About Mabe
Mabe designs, produces, and distributes appliances to more than 70 countries around the world. The company was incorporated in 1946 by Egon Mabardi and Francisco Berrondo in Mexico City. Mabe was initially dedicated to manufacture kitchen furniture. In the 1950s, Mabe began manufacturing various appliances such as gas ranges and refrigerators. Rapid growth allowed Mabe to become the leading exporter of home appliances in Mexico as early as 1960.

In 1986, Mabe entered into an important joint venture with General Electric Co. to produce appliances for the US market. As part of an effort to move away from controlling Mexican operations from the US, GE decided to enter into the joint venture with a 48 per cent minority stake. While GE hoped to gain access to Mexico’s low cost labour pool, Mabe was given greater access to the world’s largest consumer market through GE’s US distribution network. By the mid ’90s, more than two-thirds of all gas ranges and refrigerators imported into the United States were designed and manufactured by Mabe in Mexico, while 95 per cent of those sold under the General Electric names were designed in Mabe’s San Luis Potosi plant, the biggest kitchens plant in the world [1]. As a result, Mabe became the leading brand in Mexico, moving ahead of Vitro’s Acros brand with a domestic market share of 50%.

As the company continued to grow, exports and production remained concentrated in Latin America. By the mid ’90s, Mabe was one of the leading appliance manufacturers in the world with annual growth between 15 and 20 per cent. In Mexico, Mabe all but dominated the market, while in Latin America, Mabe commanded a 70% market share in home appliances.

The group also entered into several joint ventures and alliances with other regional manufacturers. Solid sales growth in Latin America all but eliminated the impact of the peso crisis in 1995.

Sources:

 

- Advertisement -

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Carlos Alvarado: “Don Rodolfo has my confidence”

QCOSTARICA - President Carlos Alvarado said he has all the confidence...

Week immersed in passage of tropical wave, June Solstice and Veranillo

QCOSTARICA - Today, Monday, June 21, is the day of the...

MOST READ

OIJ investigation into road works corruption leads to inquiries in Panama

QCOSTARICA - The prestige of the company of some of the richest men in Costa Rica hangs by a thread. For many, the MECO...

Bribed with cars, sexual favors and money in exchange for road works contracts

QCOSTARICA - The OIJ uncovered a big pothole on Monday when it was announced that public officials had allied with construction companies that, apparently,...

Today’s Vehicle Restriction June 15: 3 & 4 CANNOT circulate

Today, Tuesday, June 15, vehicles with plates ending 3 & 4 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

Since 2018 MECO has received contracts from the State for more than ¢139 billion

QCOSTARICA - Almost ¢140 billion colones (US$227 million dollars) is the amount the MECO construction company was able to snare for public works contracts...

Lack of space on Racsa’s hard drive paralyzed immigration consultation at the airport this Monday

RICO's DIGEST - We've all had this happen, your computer's hard drive is full and your computer crashes. But we are not the Radiográfica...

Today’s Vehicle Restriction June 21: plates ending in 1 & 2 CANNOT circulate

Today, Monday, June 21, we are back to the two plates that cannot circulate, in today's case plates ending in 1 & 2 CANNOT...

Today’s Vehicle Restriction June 16: 5 & 6 CANNOT circulate

Today, Wednesday, June 16, vehicles with plates ending 5 & 6 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

New trends in coffee consumption challenge sector

QCOSTARICA - Changes in consumption habits in terms of times, types of preparation and specialties challenge the coffee sector. Most of the consumers in Costa...

13 Powerful Home Remedies for Acne

Acne is considered to be one of the most common skin ailments on the planet, with a record 60 million people being afflicted by...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.