Electrolux to discontinue production at factory in Alcalà, Spain
Electrolux will discontinue production at a factory in Alcalà, Spain in 2011. The factory manufactures entry level washing machines for the Spanish, Portuguese, French and UK markets and has 450 employees. “The European market for household appliances is fiercely competitive. Unfortunately we can not manufacture products at a competitive cost level in the Alcalà factory which is why Electrolux will stop production there in 2011”, says Enderson Guimaraes, head of Electrolux Major Appliances Europe. The closure is scheduled to be completed during the first quarter of 2011. The closure of the factory will incur a total cost of approximately SEK 440 million, which will be taken as a charge against operating income in the fourth quarter of 2009 within items affecting comparability.