Elettronica
Electrolux Announces Global Streamlining Measures and Hungarian Manufacturing Investment
As previously communicated, Electrolux is also currently carrying out a manufacturing investment program, totaling SEK 8 billion during 4-5 years as from 2018, to strengthen competitiveness and drive profitable growth. As part of this, the company has decided to invest approx. EUR 100 million in automation, digitalization and innovation capabilities in its production of high-end refrigerators in Nyíregyháza, Hungary . Furthermore, in the review of the overall competitiveness of the manufacturing operations in Hungary , Electrolux has decided to outsource production of vacuum cleaners from its Jászberény facility, and a significant part of the freestanding refrigerators currently produced there. This is anticipated to impact approximately 800 production employees, and relevant union consultations will take place.
The measures announced today are anticipated to generate additional annual savings of about SEK 500 million , with full effect as from 2022. This means that the total annual costs savings from ongoing efficiency activities and investments are now expected to be approximately SEK 3.5 billion , with full effect from 2024.
The restructuring charges of approximately SEK 1.6 billion will be reported as non-recurring items in the results for the third quarter of 2019. This will impact all business areas as well as Group common costs.
Sophie Arnius,
Investor Relations
+46-70-590-80-72
Daniel Frykholm
Electrolux Press Hotline
+46-8-657-65-07
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https://news.cision.com/electrolux/r/electrolux-announces-global-streamlining-measures-and-hungarian-manufacturing-investment,c2899641
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