© Electrolux Electronics Production | January 31, 2018
Electrolux invests $500 million in US manufacturing operations
The Swedish home appliance manufacturer says it’s planning to invest approximately USD 500 million in its U.S. manufacturing operations, stepping up a strategic initiative to drive profitable growth in North America.
At the same time, the company also said it will consolidate freezer production into its Anderson, South Carolina refrigeration facility. Electrolux’s plans entails modernising and expanding the manufacturing operation in Springfield, Tennessee for about USD 250 million, including a new line of freestanding cooking products, a press release reads. This adds to a previously decided investment from the company of about USD 250 million in a new range of products and manufacturing processes at the Anderson facility. As a result of the consolidation into Anderson, the company will cease production at its St. Cloud, Minnesota facility. Production is expected to continue through 2019. With this company will take a restructuring charge of approximately USD 75 million in the first quarter of 2018. "We are committed to the Frigidaire brand, our U.S. manufacturing base and are investing approximately $500 million in our business' growth areas while also simplifying our operations," said Alan Shaw, Head of Electrolux Major Appliances North America. "This is a difficult announcement for our Minnesota teammates. We are committed to supporting them and are announcing this two years in advance to provide transition time." The expansion of the Springfield site will start this year with construction expected to begin in late 2018 and continue into 2020. With this Electrolux is expanding production by adding 400’000 square feet (37’000 square metre) for manufacturing capacity. Construction in Anderson was started during 2017 and is expected to be completed in 2019. These investments are a part of a strategy to drive targeted growth over the coming three to four years, particularly in North America and Latin America. Investments will be focused on product development, automation and innovation.