Electrolux will close a factory in St. Petersburg, Russia in 2010. The factory manufactures washing machines mainly for the Russian market and has approx. 250 employees.
“The Russian market for household appliances is fiercely competitive. Unfortunately we can not manufacture products at a competitive cost level in the St. Petersburg factory which is why production there will be discontinued next year”, says Enderson Guimaraes, head of Electrolux Major Appliances Europe.
The closure is scheduled to be completed during the second quarter of 2010. The closure of the factory will incur a total cost of approximately SEK 120 million, which will be taken as a charge against operating income in the first quarter of 2009.
For further information contact Electrolux Media Hotline on +46 8 657 65 07
Electrolux is a global leader in household appliances and appliances for professional use, selling more than 40 million products to customers in more than 150 markets every year. The company focuses on innovations that are thoughtfully designed, based on extensive consumer insight, to meet the real needs of consumers and professionals. Electrolux products include refrigerators, dishwashers, washing machines, vacuum cleaners and cookers sold under esteemed brands such as Electrolux, AEG-Electrolux, Eureka and Frigidaire. In 2008, Electrolux had sales of SEK 105 billion and 55,000 employees.
Electrolux may be required to disclose the information provided herein pursuant to the Securities Market Act.