Electrolux Readies Australian Plant For New Products Sep 10, 2004

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Electrolux has invested $26 million at its Dudley Park manufacturing facility in Adelaide to roll out new cooking products in 2005.

The move is part of the global electrical appliance manufacturer's plans to nationalize its brands and maintain its 50-percent market share in Australia. The new lines and other plant, equipment and production changes at Dudley Park is part of Electrolux's ongoing consolidation of its Australian manufacturing.

Trevor Carroll, managing director of Electrolux Home Products Australia, said 85 percent of the refrigerator, washing machine and dryer, dishwasher and cooking product lines had been re-designed over the past 18 months.

Electrolux is also taking over its Kelvinator refrigerator, Chef cooking and Dishlex dishwasher brands as part of the revamp. While these brands will be phased out over the next five years, Mr. Caroll said Westinghouse and Simpson will continue as stand-alone brands.

"It is part of a global strategy for Electrolux to be the main brand worldwide," Mr. Carroll said. "It also aims to move Australian consumers' perception Electrolux is a leading white goods brand, not just a floor care firm."

Earlier in 2004, Electrolux closed a New Zealand cooking appliance plant and two non-core component plants in Adelaide to keep Australian manufacturing costs competitive against Asian imports lead by South Korean competitors LG and Samsung.

Electrolux has also shut or cut back non-core operations to concentrate on producing larger high-end appliances in Adelaide (cooking products, washers, dryers and dishwashers)and at Orange in New South Wales (refrigerators).

(Melbourne Herald Sun)

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