Quebec has loaned Electrolux CAD$2 million since 2009 and wants the money back now that Electrolux is planning to close the plant near Montreal, according to several web site articles credited to QMI Agency.
Electrolux announced on Dec 15 that it will close the plant in l'Assomption, Quebec, Canada, in 2013. North American cooking appliance manufacturing will be consolidated in a new, $190 million facility, to be constructed in Memphis, TN.
The article said the $2 million loaned to Electrolux by Investment Quebec was intended to be used to upgrade its plants in Quebec. The economic development agency was originally planning to provide Electrolux $4.7 million in total. With the pending closure of the l'Assomption plant, with 1300 employees, Electrolux is not meeting the stipulations of the agreement, according to a spokesperson quoted in the media reports, and the economic development agency said it wants to recover the subsidy.
Back to Breaking News