EMCC European Monitoring Centre on Change

Electrolux

Company/Organisation:
Electrolux

Geographic Location

Country: Sweden
Region: Kalmar län; Småland med öarna
Location of affected unit(s): Västervik

Company

Sector: Manufacturing
Manufacture of electrical equipment
27 - Manufacture of electrical equipment
Group: Electrolux

Employment Effects

Announcement Date: 11-05-2004
Planned Job Reductions min: 500
Planned Job Reductions max: 500
Type of Restructuring: Offshoring/Delocalisation
Employment Effect Start: 11-05-2004
Foreseen End Date: 31-03-2005

Additional Information

Electrolux has decided to discontinue production of vacuum cleaners in Västervik, Sweden. Production will gradually be transferred to the Electrolux vacuum cleaner factory in Hungary. Production will continue during 2004, and is expected to end in the first quarter of 2005. The Electrolux vacuum cleaner factory in Västervik has approximately 500 employees. The closure of the factory will incur a total cost of approximately SEK 200 million, the majority of which will be taken as a charge against operating income in the second quarter of 2004. The yearly savings are estimated to be approximately SEK 150 million.