Electrolux to close factory in l’Assomption, Canada, and reduce its workforce in Europe

Electrolux has taken the decision to close its factory in l’Assomption, Quebec, Canada, in 2013. The factory manufactures cooking products and has approximately 1,300 employees. In Europe, Electrolux will reduce its workforce by approximately 800 employees in 2011 and 2012.

Production in l’Assomption will be transferred to a new facility, the location of which will be announced shortly. Transfer of production from the factory in l’Assomption will begin in mid-2012, and the factory will close in the fourth quarter of 2013. The closure will incur a total cost of approximately SEK 450m, which will be taken as a charge against operating income in the fourth quarter of 2010, within items affecting comparability.

In Europe, the workforce within the Major Appliances industrial operations will be reduced by approximately 800 employees. No factory will be closed. Changes will be implemented gradually, and fully finalized in the fourth quarter of 2012. The redundancies will incur a total cost of approximately SEK 400m, which will be taken as a charge against operating income in the fourth quarter of 2010, within items affecting comparability.

The Electrolux restructuring program initiated in 2004 is expected to be completed in 2011. The total cost of the program will be approximately SEK 8.5 billion, and the program is expected to generate annual cost savings of SEK 3.4 billion with full effect by 2013.

For further information, contact Electrolux Press Hotline, +46 8 657 65 07.

Electrolux is a global leader in household appliances and appliances for professional use, selling more than 40 million products to customers in more than 150 markets every year. The company focuses on innovations that are thoughtfully designed, based on extensive consumer insight, to meet the real needs of consumers and professionals. Electrolux products include refrigerators, dishwashers, washing machines, vacuum cleaners and cookers sold under esteemed brands such as Electrolux, AEG-Electrolux, Eureka and Frigidaire. In 2009 Electrolux had sales of SEK 109 billion and 51,000 employees. For more information go to www.electrolux.com/press and www.electrolux.com/news.

Electrolux may be required to disclose the information provided herein pursuant to the Securities Market Act.