STOCKHOLM, Sweden, Feb. 12, 2004 (PRIMEZONE) — (ELUX) Electrolux is investigating a transfer of vacuum cleaner production in Vastervik, Sweden, to Hungary and a possible closure of the factory in Vastervik.
The global competition on the vacuum cleaner market is forcing the industry to decrease its costs. In Europe, Electrolux manufactures vacuum cleaners in two factories, one in Sweden and one in Hungary. In terms of capacity, one factory is sufficient. A first analysis shows that a move of production to Hungary would result in substantial savings.
The unions will be called to MBL-negotiations in order to participate in the continued decision-process.
The Electrolux vacuum cleaner factory in Vastervik has approximately 500 employees and manufactures vacuum cleaners primarily for the European market. According to the first analysis a possible closure would incur a total cost of approximately SEK 200m and a yearly saving of approximately SEK 150m.