Electrolux Investing in Product Development in Hungary Jan 20, 2010

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Swedish white goods maker Electrolux has earmarked EUR 5.2 million (U.S. $7.35 million) for product development at its Nyíregyháza, eastern Hungary plant in 2010, János Takács, regional chief administrative officer of Electrolux Central Eastern Europe, said on Tuesday.

Electrolux set up the Nyíregyháza plant 5 years ago with an investment of EUR 85 million (U.S. $120 million) and has spent a total of EUR 13.3 million (U.S. $18.8 million) on product development there since 2005. It manufactures 580 different refrigerator models on three production lines with a 1,350-strong staff. Via the establishment of the factory, Hungary has become the largest fridge and freezer manufacturing unit of Electrolux in Europe, MTI reports.

Electrolux employs more than 4,000 people in Hungary and has managed to keep its headcount unchanged despite the crisis, said Ernesto Ferrario, senior vice president Operations, Major Appliances Europe. However, he also noted that white goods sales did decline in Western Europe, which forced the company to adjust to the new situation. During this process, Electrolux had to reduce its production, and output is slowly returning to 2008 levels only now, Ferrario added.

Electrolux expects to produce 700,000 units in Nyíregyháza this year, with plans to switch about 60% of bottom-freezer refrigerators to new models.
(Source: Portfolio.hu)

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