Electrolux to consolidate cooking manufacturing in North America

Electrolux to consolidate cooking manufacturing in North America

Electrolux is planning to consolidate its North American cooking
manufacturing by building a new manufacturing facility in Memphis,
Tennessee, USA. In consolidating cooking production to Tennessee, where
Electrolux currently operates a factory in Springfield, Electrolux will
gain advantages of scale by leveraging resources such as R&D, talent,
labs and supply base.

After having investigated a large number of potential locations in the
United States and Mexico, Electrolux has taken the decision to build a
new factory in Memphis, Tennessee. This site offers an optimal
geographical location towards customers and suppliers. Together with the
existing cooker factory in Springfield, the factory in Memphis will
establish Tennessee as a cooking production center for Electrolux in
North America, enabling Electrolux to realize synergies in
manufacturing.

Production in Memphis is expected to start in mid-2012, and the factory
is expected to be fully operational in 2013. On December 15 08:00 CET,
Electrolux announced that its factory in l'Assomption, Quebec, Canada,
is expected to close in the fourth quarter of 2013.

The new manufacturing site, which represents an investment of USD 190M,
will receive investment support from state, county and city governing
bodies, which is pending their final approval.

The Electrolux restructuring program initiated in 2004 is expected to be
completed in 2011. The total cost of the program will be approximately
SEK 8.5 billion, and the program is expected to generate annual cost
savings of SEK 3.4 billion with full effect by 2013.

For further information, contact Electrolux Press Hotline, +46 8 657 65
07.