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Electrolux phases out production home and abroad

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Electrolux phases out production home and abroad
11:26 CEST+02:00
Swedish appliance maker Electrolux is considering plans to phase out production at one of its factories in Motala in central Sweden. The company has also announced the closure of a plant in Spain which employs 450 people.

The Motala site produces cookers for the Nordic market and employs 240 people.

”The factory has made losses for the last three years and therefore something has to be done,” spokesperson Erik Zsiga said.

”It's primarily to do with the shrinking market for free-standing cookers,” he explained.

Electrolux stated that union negotiations are already in progress.

A final decision over the planned phase-out will be made in December, and regardless of the outcome, production at the Motala plant will continue until the end of 2010.

On Friday the company also announced the closure of a washing machine factory in Spain in 2011 that employs 450 people.

"Unfortunately we cannot manufacture products at a competitive cost level, which is why we will stop production there," said Enderson Guimaraes, head of Electrolux operations in Europe.

The plant in Alcala, near Madrid, produces washing machines for the Spanish, Portuguese, French and British markets.

After carrying out several reorganisations in recent years in a bid to cut costs, Electrolux announced the elimination of 3,000 jobs in December 2008 in response to the global economic slowdown.

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