Electrolux to Concentrate Production of Refrigerators in Italy to Factory in Susegana.STOCKHOLM, Sweden -- Regulatory News: In February 2008, Electrolux (STO:ELUXA) (STO:ELUXB) (LSE LSE - Language Sensitive Editor :ELXB) launched an investigation on how to increase the competitiveness of Electrolux refrigeration refrigeration, process for drawing heat from substances to lower their temperature, often for purposes of preservation. Refrigeration in its modern, portable form also depends on insulating materials that are thin yet effective. 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 A major appliance is usually defined as a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, food preservation, or cleaning, whether in a household, institutional, commercial or industrial setting. 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 Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. 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 out·place·ment n. The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer. services and facilitation Facilitation The process of providing a market for a security. Normally, this refers to bids and offers made for large blocks of securities, such as those traded by institutions. 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 SEK In currencies, this is the abbreviation for the Swedish Krona. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 600m of which SEK 540m will be taken as a charge against operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. 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. This information was brought to you by Cision http://newsroom.cision.com |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion