Electrolux will close vacuum cleaner factory in Västervik, Sweden

(ELUX) Electrolux has decided to discontinue production of vacuum
cleaners in Västervik, Sweden. Production will gradually be transferred
to the Electrolux vacuum cleaner factory in Hungary. Production will
continue during 2004, and is expected to end in the first quarter of

In February 2004, Electrolux announced that it was investigating a possible transfer of the vacuum cleaner production in Västervik to

“We have now finalized our investigation of the factory in Västervik,”
says Magnus Yngen, head of the Floor Care & Light Appliances business
sector. “We have also carefully studied the investigation performed by
the employee consultant. Both investigations show that it is not
possible to overcome the cost disadvantages of manufacturing vacuum
cleaners in Sweden. We will now go forward with the discussions with the
unions regarding the conditions for the closure.”

The Electrolux vacuum cleaner factory in Västervik has approximately 500
employees. The closure of the factory will incur a total cost of
approximately SEK 200m, the majority of which will be taken as a charge
against operating income in the second quarter of 2004. The yearly
savings are estimated to be approximately SEK 150m.


Further information
The Electrolux Press Hotline is available at +46 8 657 65 07.

The Electrolux Group is the world’s largest producer of powered
appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chainsaws, lawn mowers, and
garden tractors. Every year, customers in more than 150 countries buy
more than 55 million Electrolux Group products for both consumer and
professional use sold under famous brands such as AEG, Electrolux, Zanussi, Frigidaire, Eureka and Husqvarna. In 2003, Electrolux had sales
of SEK 124 billion and 77,000 employees.