STOCKHOLM, April 22 (Reuters) - Swedish appliance maker Electrolux said on Wednesday it would end production at its factory in Jaszbereny, Hungary by the end of the year, envisaging a restructuring
Appliance maker Electrolux to close Hungary plant, affecting 600 jobs
Electrolux Announces Closure of Hungarian Factory
Impact on Employees and Local Economy
STOCKHOLM, April 22 (Reuters) - Swedish appliance maker Electrolux will close its factory in Jaszbereny, Hungary by the end of the year, affecting around 600 employees, the company said on Wednesday.
Reasons Behind the Closure
Competitive Environment and Market Demand
Electrolux said in a statement the closure of the plant, which manufactures built-in and freestanding refrigeration products, is part of efforts to lower costs in the face of competition and sluggish demand.
Company Statement
"This is driven by the current competitive environment, which is impacted by stagnant market demand, price pressure, and increasing constraints on cost competitiveness," it said.
Financial Implications
Restructuring Charges
Electrolux will book a 0.6 billion crown ($65.6 million) restructuring charge, of which 0.3 billion is cash related, in the second quarter, it added.
Currency Exchange Rate
($1 = 9.1537 Swedish crowns)
Reporting Credits
(Reporting by Anna Ringstrom, editing by Essi Lehto and Terje Solsvik)
