STOCKHOLM, Feb. 1, 2023 /PRNewswire/ -- Electrolux has
decided to discontinue production at the Nyíregyháza factory in
Hungary from the beginning of
2024. The company will take a restructuring charge of approximately
SEK 550 million which will be
reported as a non-recurring item affecting operating income for
Business Area Europe in the first quarter of 2023.
The decision follows a review of production capacity needs
including an investigation into the competitiveness of the
Nyíregyháza factory, which employs around 650 people and
manufactures refrigeration products. The strategic direction is to
optimize the refrigeration production footprint from a cost
perspective through both outsourcing and own-production leveraging
Group scale.
The decision means that remaining investments in refrigeration
products that are part of the earlier communicated global
re-engineering investments of SEK 8
billion, which started in 2018, will be revised and
redirected in line with the strategic direction of Electrolux.
Electrolux is exploring possibilities to divest the factory in
Nyíregyháza and is committed to collaborating with relevant
authorities and stakeholders to support its employees in the best
possible way during this phase.
The cash flow impact is estimated to be approximately
SEK 300 million, mainly in 2024-2025.
The final operating income and cash flow effects will be determined
by the exchange rate on the relevant recording dates.
Electrolux will publish its results for the fourth quarter
tomorrow February 2, 2023, at 08.00
CET. A telephone conference will be held following the release of
the results, starting at 09.00 CET. Questions related to this
announcement will be addressed during and following the telephone
conference.
This is information that AB Electrolux is obliged to make public
pursuant to the EU Market Abuse Regulation. The information was
submitted for publication, through the agency of the contact person
set out above, on 01-02-2023
12:45 CET.
CONTACT:
For further information, please contact:
Sophie Arnius, Investor Relations, +46 70 590 80 72
Electrolux Press Hotline, +46 8 657 65 07
The following files are available for download:
https://mb.cision.com/Main/1853/3706909/1820168.pdf
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