STOCKHOLM, Jan. 30, 2018 /PRNewswire/ --
The Electrolux Group said today it is planning total
investments of approximately USD 500
million in its U.S. manufacturing operations, stepping up a
strategic initiative to drive profitable growth in North America with new lines of innovative
Frigidaire kitchen products. The company also said it will
consolidate freezer production into its Anderson, South Carolina refrigeration
facility.
Today's announcement entails modernizing and expanding the
manufacturing operation in Springfield,
Tennessee for approximately USD 250
million, including a new line of freestanding cooking
products. This adds to a previously decided investment of
approximately USD 250 million in a
new range of products and manufacturing processes at the
Anderson facility. The two
investments, in combination with others, will provide a new range
of innovative kitchen products tailored for the Frigidaire
consumer, delivering consistent, great tasting results.
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. The company will
take a restructuring charge of approximately USD 75 million (approximately SEK 600 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."
Construction in Springfield
will begin late 2018 and continue into 2020. The company will
modernize the plant and create the opportunity to expand production
by adding 400,000 square feet (37,000 m2) for manufacturing
capacity. Construction in Anderson
was started during 2017 and is expected to be completed in
2019.
Electrolux is increasing its level of capital expenditure
investments 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. As previously announced, total capital expenditure for
the company will increase to approximately SEK 6 billion in 2018. The investments in
Springfield and Anderson are a part of this plan.
CONTACT:
For further information, please contact:
Daniel Frykholm, Electrolux Press
Hotline, +46-8-657-65-07
Eloise Hale Electrolux Major Appliances North America,
+1-980-236-29-29
Electrolux Investor Relations department kindly refers any
questions regarding this announcement until after the Q4 2017
results have been published at 0800
CET on Jan. 31.
This is information that AB Electrolux is obliged to make
public pursuant to the EU Market Abuse Regulation and the
Securities Markets Act. The information was submitted for
publication, through the agency of the contact person set out
above, at 1800 CET on Jan 30, 2018.
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SOURCE Electrolux