Electrolux Closing U.S. Refrigerator Factory Jan 16, 2004

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Swedish appliance maker Electrolux will discontinue production of refrigerators at its factory in Greenville, MI, U.S. The factory will continue to operate into 2005.

Most of the products currently manufactured in Greenville will move to a new factory to be built in Mexico. The investment in Mexico is expected to be approximately U.S. $150 million over the coming 2 years.

In October 2003, Electrolux announced that the factory was under evaluation. Careful and in-depth evaluation of proposals from the local community, the state of Michigan, and the company’s labor unions has been conducted, Electrolux said.

The Greenville facility has approximately 2,700 employees. The closure of the factory will incur a total cost of approximately SEK 1.2 billion (approx. U.S. $162.4 million), the majority of which will be taken as a charge against operating income for the first quarter of 2004. Approximately half of the cost refers to write-down of assets.

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