Regulatory News:
In February 2008, Electrolux (STO:ELUXA) (STO:ELUXB) (LSE:ELXB) launched an investigation on how to increase the competitiveness of Electrolux refrigeration production in Italy. As a result of the investigation, Electrolux has decided to concentrate production of refrigerators in Italy to its factory in Susegana while ceasing production in Scandicci. Additional investments will be made in the Susegana factory to increase efficiency, productivity and competitiveness for a sustainable future.
"The competitiveness of our Italian refrigerator plants has been weakening for several years, which is why we decided to carry out this investigation," says Ernesto Ferrario, Senior Vice President Operations, Major Appliances Europe. "We are confident that the conclusions from the investigation, when implemented, will increase our competitiveness and profitability in the refrigeration business."
In recent years, production capacity of refrigerators has grown rapidly, with an emphasis on Eastern Europe and parts of Asia. This development, in combination with increased global competition, has led to strong price pressure and subsequently a decline in margins.
A total of 450 employees will be affected at the Scandicci plant and approximately 300 in Susegana. Electrolux will assist in finding solutions to reduce negative impact on affected employees. Options considered include outplacement services and facilitation of re-industrialization of the Scandicci factory.
The outlined changes to the Electrolux refrigerator production in Italy are expected to be completed in the second half of 2009. The restructuring will incur a total cost of approximately SEK 600m of which SEK 540m will be taken as a charge against operating income in the second quarter 2008.
Electrolux is a global leader in home appliances and appliances for professional use, selling more than 40 million products to customers in 150 countries 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 2007, Electrolux had sales of SEK 105 billion and 57,000 employees. For more information, visit http://www.electrolux.com/press Electrolux may be required to disclose the information provided herein pursuant to the Securities Market Act.
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