Transition Begins in 2012 with Final Closure in 2013
L'ASSOMPTION, QC, Dec. 14 /CNW Telbec/ - Electrolux Major Appliances North America today announced its decision to close its manufacturing facility in L'Assomption, Quebec, and to transfer production to a new facility, beginning in mid 2012. Final closure of the facility is scheduled for the fourth quarter of 2013.
The Company will maintain about 75 jobs at its R&D centre on the site for a further six to 12 months.
The plant produces cooking appliances and employs approximately 1,300 people.
"This was a difficult but necessary decision to maintain our competitiveness and innovation in the cooking appliance business," said Billy Benson, Vice President, Operations, Electrolux Major Appliances North America, who announced the news to employees in L'Assomption today. "It allows us to continue to provide consumers quality products that are competitively priced."
He noted that many major appliance manufacturers have reduced their cost structures by establishing cooking product manufacturing facilities in lower cost markets. "Apart from the challenges of the recession, consumers are demanding competitively-priced products featuring the latest technologies, requiring manufacturers to continually reinvest in product innovation while managing costs."
Mr. Benson commented that this decision follows a comprehensive study of alternatives to improve the cost competitiveness of the Company's cooking products, which confirmed that L'Assomption was not a viable site.
"We are sensitive to the impact of this announcement on our employees and the community," he added. "We are announcing this decision more than a year in advance of the first production moves - and in some cases up to three years - to allow employees to make their plans for the future, and to provide the community time to attract new investment."
"This decision is not a reflection of the efforts of our employees, whose diligence we recognize, but a strategic decision based on these competitive factors," he explained.
Electrolux is a global leader in home appliances and appliances for professional use, selling more than 40 million products to customers in more than 150 countries 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, washers, dryers, ranges, air conditioners and vacuum cleaners sold under esteemed brands such as Electrolux, AEG-Electrolux, Eureka and Frigidaire. In 2009, Electrolux had sales of over US $14 billion and 51,000 employees. For more information, visit www.electrolux.com/press and www.electrolux.com/news.
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