The St. Cloud Electrolux freezer factory is under interim management, and layoffs are likely this fall as a small portion of production permanently shifts to China.
Interim manager Phil Hilling has replaced general manager Ron McCoy, who left a little more than a year after taking the job.
Electrolux spokesman Tony Evans declined to give reasons for McCoy’s departure, citing a policy that prohibits comment on personnel matters
Electrolux will make a particular size of compact chest freezer in China instead of St. Cloud to reduce production costs and accommodate plant capacity, Evans said.
“It’s a small part of our overall freezer production,” he said.
The St. Cloud plant has fought to stay competitive with foreign factories that have lower labor costs and fewer environmental rules.
The number of layoffs in St. Cloud is unknown because the factory might be able to absorb some workers in other areas of production, Evans said.
Union representative Lewis Neuman said he hopes to learn soon about production schedules for December and January.
The plant shut down for a week in early July to allow demand to catch up with production. It has 1,680 hourly workers who belong to the International Association of Machinists and Aerospace Workers.
Hilling has served in a variety of roles with Electrolux, most recently managing a dishwasher manufacturing plant in Kinston, N.C.
The St. Cloud plant is part of Electrolux Home Products North America,
a division of appliance-maker Electrolux AB. restructuring, Evans said.
This week, Electrolux announced that chief executive Hans Straberg will take control of a global white-goods leadership team.
“We will speed up our efforts to save costs, address underperformers and produce an even stronger offering to the different needs of the retail trade and the consumer in countries all over the world,” Straberg said in a prepared statement.
Electrolux AB, a publicly held company, reported a 7.7 percent decrease in operating income in 2003.
The changes in St. Cloud are unrelated to the broader restructuring, Evans said.
From St. Cloud Times