Electronics Production | December 12, 2005
Electrolux to close German fab
After a six-month long investigation, Electrolux today decided to initiate closure of the appliances factory in Nuremberg, Germany. Production will gradually be moved to Italy and Poland. Closure of the factory is expected to be completed by the end of 2007.
“This was one of the most difficult decisions I ever experienced during my time at Electrolux. I am aware that this decision will affect, in a very negative way, many individuals, their families and relatives. However we finally had to conclude that there is no way to bridge the large cost gap that would make production in Nuremberg competitive”, says Johan Bygge, head of Electrolux Major Appliances Europe and Asia Pacific. The factory in Nuremberg has approx. 1,750 employees. The closure of the factory will incur a total cost of approximately SEK 2.3 billion, which will be taken as a charge against operating income in the fourth quarter of 2005. Electrolux also decided to initiate an investigation about a potential closure of the compact appliances factory in Torsvik, Sweden, which has 190 employees. The restructuring cost for a potential factory closure will be communicated when the investigation is completed.