Electrolux Investigates Potential Closure of German Factory Jun 7, 2005

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Sweden-based appliance maker Electrolux said that it is investigating a possible closure of its factory in Nuremberg, Germany and that other production sources are being considered.

"Declining price levels and new competitors with lower cost bases make it necessary for the whole industry to take actions," Johan Bygge, head of Electrolux Major Appliances Europe, said. "The products being manufactured in Nuremberg are exposed to severe price pressure. We have to acknowledge that consumers are not willing to pay higher prices for products produced in a specific country."

The Electrolux factory in Nuremberg has approximately 1,750 employees and manufactures washing machines, dishwashers, and dryers. A potential closure of the factory would incur a total cost of approximately SEK 2.1 billion (approx. U.S. $282.3 million).

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