Electrolux has said it would close an oven factory in Britain that employs some 500 staff, incurring costs of 390 million Swedish crowns (29.6 million pounds).
Electrolux said it would take a charge for the cost in the fourth quarter of this year. Electrolux also announced plans to move some of the production from the plant, in Spennymoor, to Poland.
“Following a thorough investigation about the future viability of production at the factory in Spennymoor, Electrolux has decided to discontinue production at the plant,” the company said in a statement.
“To improve competitiveness some production will be phased out altogether while some production will be moved to the Electrolux plant in Swidnica, Poland.”
Production at the factory is expected to continue throughout 2008.