Electrolux will acquire a factory in Ivano-Frankivsk, Ukraine, for 19 million euros from current owner, appliance OEM Antonio Merloni S.p.A. Antonio Merloni has owned the plant since 2003 and currently has 150 employees there.
The deal is expected to close in the first quarter of 2011 and will provide a way for Electrolux to expand its operations in the emerging markets in Eastern Europe. The acquisition will function as a part of the Electrolux supply base for markets in Central and Eastern Europe. Ukraine participates in the free trade framework within the Commonwealth of Independent States (CIS), which includes Russia, Kazakhstan, Armenia, Azerbaijan, and other countries.
"By broadening our manufacturing base in the emerging markets of Eastern Europe we will increase our competitiveness and be able to supply CIS markets from within the CIS area," said Hans Stråberg, president and CEO of Electrolux.
to Daily News