Electrolux to consolidate cooking manufacturing in North America

December 15, 2010

Electrolux is planning to consolidate its North American cooking manufacturing by building a new manufacturing facility in Memphis, Tennessee, USA. In consolidating cooking production to Tennessee, where Electrolux currently operates a factory in Springfield, Electrolux will gain advantages of scale by leveraging resources such as R&D, talent, labs and supply base.

After having investigated a large number of potential locations in the United States and Mexico, Electrolux has taken the decision to build a new factory in Memphis, Tennessee. This site offers an optimal geographical location towards customers and suppliers. Together with the existing cooker factory in Springfield, the factory in Memphis will establish Tennessee as a cooking production center for Electrolux in North America, enabling Electrolux to realize synergies in manufacturing.

Production in Memphis is expected to start in mid-2012, and the factory is expected to be fully operational in 2013. On December 15 08:00 CET, Electrolux announced that its factory in l’Assomption, Quebec, Canada, is expected to close in the fourth quarter of 2013.

The new manufacturing site, which represents an investment of USD 190M, will receive investment support from state, county and city governing bodies, which is pending their final approval.

The Electrolux restructuring program initiated in 2004 is expected to be completed in 2011. The total cost of the program will be approximately SEK 8.5 billion, and the program is expected to generate annual cost savings of SEK 3.4 billion with full effect by 2013.

For further information

Contact Electrolux Press Hotline, +46 8 657 65 07.

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